USD/CNY Technical Analysis: retraced 78.6 percent of 2016-2018 drop, overbought

• The USD/CNY pair rose above 6.8089 (78.6% Fib retracement of Dec 2016 - March 2018 drop) and looks overbought as per the 14-day relative strength index (RSI).
• The bearish divergence of the hourly chart RSI indicates scope for a minor pullback. 

Hourly chart

Spot Rate: 6.7906

Daily High: 6.8105

Daily Low: 6.77

Trend: Minor correction likely

Resistance

R1: 6.8080 (78.6% Fib retracement)

R2: 6.9204 (March 2017 high)

R3: 6.9633 (December 2016 high)

Support

S1: 6.7831 (hourly chart support)

S2: 6.7379 (50-hour moving average)

S3: 6.7122 (100-hour moving average)