USD/CNH Technical Analysis: Offshore Yuan has hit most oversold levels since 2015

• The offshore Yuan (CNH) has hit the most oversold levels since 2015, the 14-day relative strength index (RSI) on the USD/CNH daily chart indicates.
• At press time, the RSI is seen at 90.77 – the highest reading since August 2015 and the pair is trading at 6.7241, having clocked an 11-month high of 6.7329 earlier today.
• So, the oversold offshore Yuan could be in for a relief rally.

Daily chart

Spot Rate: 6.7241

Daily HIgh: 6.7329

Daily Low: 6.6795

Trend: Overbought, pullback likely (Yuan oversold)

Resistance

R1: 6.7573 (January 2016 high)

R2: 6.78068 (December 2016 low)

R3: 6.7886 (January 2017 low)

Support

S1: 6.6580 (ascending 5-day moving average)

S2: 6.5897 (ascending 10-day moving average)

S3: 6.5674 (Nov. 24 low)