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Market News USD/CNH Price Analysis: Bulls applaud another monthly high with sights set towards 6.7860

USD/CNH Price Analysis: Bulls applaud another monthly high with sights set towards 6.7860

The USD/CNH continues its one-week-old ascent toward approaching the swing high from late May. The yearly peak is in focus as MACD teases bulls and RSI indicates more gain. Previous resistance line and weekly support trend line limit the near-term decline prior to the seven-week-old horizontal zone.

Alina Haynes
2022-06-13
1104

 截屏2022-06-13 上午10.57.56.png

 

USD/CNH is on the front foot as it retests the monthly high at 6.7731, about 6.7635 as of Monday's Asian session's press time.

 

Thus, the offshore Chinese yuan (CNH) pair validates Friday's break over a one-month-old resistance line, which is now support around 6.7220.

 

Also keeping USD/CNH bulls optimistic are MACD lines indicating a bull cross and a stronger RSI (14).

 

In spite of this, the price is on track to reach the monthly horizontal resistance zone between 6.7840 and 6.7860 before targeting the yearly high above 6.8384.

 

If the USD/CNH exchange rate regains its yearly high, it is not impossible to see a surge towards the psychological level of 6.9000.

 

Alternately, pullbacks must breach the resistance-turned-support at 6.7220 to recall the near-term selling.

 

Afterwards, a weekly support line might examine the price's continued decline at 6.6900.

 

A horizontal region containing successive lows noted since late April, about 6.6100, looks difficult for USD/CNH bears to penetrate thereafter.


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