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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.

Daily chart

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

USD/CNH

Overview:
    Today Last Price: 6.7552
    Today Daily change: -82 pips
    Today Daily change %: -0.121%
    Today Daily Open: 6.7634
Trends:
    Previous Daily SMA20: 6.8623
    Previous Daily SMA50: 6.8954
    Previous Daily SMA100: 6.8933
    Previous Daily SMA200: 6.7213
Levels:
    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

 

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