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  • The repeated failure to hold on to gains above 6.84, as seen in the hourly chart, could be an indication the USD/CNH bulls are likely running dry.
  • The signs of bullish exhaustion only validate the large bearish relative strength index (RSI) seen in the daily chart.
  • As a result, a pullback to levels below 6.80 could be on the cards and could happen today as the PBOC announced a stronger daily CNY fix.

Hourly chart

Spot Rate: 6.8220

Daily High: 6.8348

Daily Low: 6.8156

Trend: Bullish exhaustion


R1: 6.84569 (previous day’s high)

R2: 6.8560 (July 27 high)

R3: 6.8810 (upper Bollinger band)


S1: 6.80 (previous day’s low)

S2: 6.7737 (Tuesday’s low)

S3: 6.7527 (20-day moving average)