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
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.