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USD/CNH Technical Analysis: 200-day MA support could be tested after bear flag breakdown

The USD/CNH pair has created a bear flag - a bearish continuation pattern - on the hourly chart. Essentially, it is a pause that often ends up refreshing the preceding bear move.

4-hour chart

A 4-hour close below the lower edge of the flag, currently at 6.7545, would signal a revival of the sell-off from the high of 6.8682 and open up downside toward 6.625 (target as per the measured move method). That target looks far fetched, given the 14-day relative strength index (RSI) is reporting overbought conditions.

That said, the flag breakdown, if confirmed, could yield a test of the 200-day moving average (MA) lined up at 6.7062. Moreover, the hourly and 4-hour RSI are biased bearish, having moved into the undersold territory (back above 30.00) earlier today.

Trend: bearish after flag breakdown

USD/CNH

Overview:
    Today Last Price: 6.7653
    Today Daily change: 19 pips
    Today Daily change %: 0.0281%
    Today Daily Open: 6.7634
Trends:
    Previous Daily SMA20: 6.8494
    Previous Daily SMA50: 6.8894
    Previous Daily SMA100: 6.8924
    Previous Daily SMA200: 6.7261
Levels:
    Previous Daily High: 6.7851
    Previous Daily Low: 6.7586
    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%: 6.7687
    Previous Daily Fibonacci 61.8%: 6.775
    Previous Daily Pivot Point S1: 6.7529
    Previous Daily Pivot Point S2: 6.7424
    Previous Daily Pivot Point S3: 6.7263
    Previous Daily Pivot Point R1: 6.7794
    Previous Daily Pivot Point R2: 6.7956
    Previous Daily Pivot Point R3: 6.806

 

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