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USD/CNH technical analysis: Tuesday’s drop confirmed an end of corrective bounce

FX Street
Updated:
  • USD/CNH’s daily chart shows the tide has turned in favor of the bears.  
  • The pair risks falling to recent lows near 6.95.  

The path of least resistance for USD/CNH is to the downside.

The currency pair fell 0.24% on Tuesday, confirming an end of the corrective bounce from the Nov. 7 low of 6.9525 signaled by multiple rejections above the 100-day moving average seen in the four days to Nov. 25.

With the lower high in place near 7.05, the pair risks falling below 7.00 on Wednesday and could soon revisit recent lows near 6.95.

At press time, the pair is trading at 7.0162. A daily close above the 100-day moving average at 7.0481 is needed to confirm a bullish reversal.

Daily chart

Trend: Bearish

Technical levels

 

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