USD/CNH Technical Analysis: spinning bottom makes today's close pivotal
The USD/CNH pair is showing signs of bearish exhaustion, although a close above the previous day's high of 6.7763 is needed to confirm a temporary bullish reversal.
As seen above, the currency pair created a "spinning bottom" candlestick yesterday, which indicates that neither bulls nor the bears were able to dominate the proceedings. Note that the pattern has appeared at a time when the 14-day relative strength index (RSI) is reporting oversold conditions.
So, it could be argued that the spinning bottom represents bearish exhaustion. A short-term bearish-to-bullish trend change, however, would be confirmed, if the pair closes today above 6.7763 (high of the spinning bottom). Moreover, that would validate the bearish exhaustion signaled by the spinning bottom and the oversold readings on the RSI.
It is worth noting that a close below 6.7387 (spinning bottom low) would imply a continuation of the sell-off, in which case, the psychological support of 6.70 could be put to test soon.
Trend: bullish above 6.7763
Today Last Price: 6.7552
Today Daily change: -82 pips
Today Daily change %: -0.121%
Today Daily Open: 6.7634
Previous Daily SMA20: 6.8623
Previous Daily SMA50: 6.8954
Previous Daily SMA100: 6.8933
Previous Daily SMA200: 6.7213
Previous Daily High: 6.7768
Previous Daily Low: 6.7396
Previous Weekly High: 6.8687
Previous Weekly Low: 6.7376
Previous Monthly High: 6.9509
Previous Monthly Low: 6.826
Previous Daily Fibonacci 38.2%: 6.7626
Previous Daily Fibonacci 61.8%: 6.7538
Previous Daily Pivot Point S1: 6.743
Previous Daily Pivot Point S2: 6.7227
Previous Daily Pivot Point S3: 6.7058
Previous Daily Pivot Point R1: 6.7803
Previous Daily Pivot Point R2: 6.7972
Previous Daily Pivot Point R3: 6.8175