USD/CNH Price Analysis: Tests 100-day MA for first since Dec. 4
- USD/CNH tests key MA for first in two months.
- Bulls have pushed the pair above a three-month descending trendline.
- Daily chat indicators are reporting strong upside bias.
USD/CNH rose above the psychological resistance of 7.00 on Monday and tested the 100-day moving average (MA) for the first time in two months.
At press time, the pair is trading at 7.0146, representing marginal gains on the day and the 100-day MA is placed at 7.0231.
The pair closed Monday above the resistance of the trendline connecting Oct. 10 and Dec. 3 highs. The upside breakout is backed by a bullish or above-50 reading on the relative strength index (RSI). Further, the MACD histogram is producing higher bars above the zero line, indicating a strengthening of upward momentum.
The 100-day MA hurdle, therefore, could be breached soon. A close higher would open the doors to 7.0865 (December high).
A close below the ascending 10-day average at 6.9689 would abort the bullish view.