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  • USD/CNH gapped higher and almost tested the 200-day moving average (MA) earlier today.  
  • The renewed US-China trade tensions coupled with bullish technicals favor upside in USD/CNH.  

USD/CNH almost tested the 200-day moving average (MA) at 6.8262, as suggested by the bull flag breakout last week.

The long-term MA has come into play for the first time since Feb. 19. As of writing, the pair is trading at 6.80, representing a 0.97% gain on the day, having clocked a high of 6.8212 earlier today.

The currency pair clocked a high of 6.8218 earlier today and is currently trading at 6.80, representing a 0.97% gain on the day. The pullback from session highs could be associated with the overbought readings on the hourly and 4-hour chart RSIs.

Looking forward, the spot may revisit 6.76 (April 25 high) and fill the gap before breaking above the 200-day MA on re-escalation of US-China trade tensions.

Daily chart

Trend: Bullish