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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.

Daily chart

Trend: Bullish

Technical levels

 

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