USD/CNH Technical Analysis: Bulls in control

• Friday's bullish outside-day candle and the basing pattern around 6.824 validates the falling channel breakout witnessed on Aug. 30.
• The 5-day, 10-day moving averages (MAs) are trending north indicating a bullish setup. The relative strength index (RSI) is holding in bullish territory above 50.00.
• The spot could re-test the Aug. 15 high of 6.9584 and may rise even further if the RSI sees a falling channel breakout.
• On the downside, a daily close below 6.7877 (23.6% Fib R of 6.2353/6.9584) could embolden the bears.

Hourly Chart

Spot Rate: 6.8706

Daily High: 6.8736

Daily Low: 6.8590

Trend: Bullish

Resistance

R1: 6.8955 (Aug. 24 high)

R2: 6.9124 (Aug. 3 high)

R3: 6.9584 (Aug. 15 high)

Support

S1: 6.8590 (session low)

S2: 6.8246 (Friday's low)

S3: 6.7995 (50-day moving average)