USD/CNH Technical Analysis: Chipping away at key ascending trendline support

• The USD/CNH pair is feeling the pull of gravity as Shanghai Composite is gaining altitude, possibly due to assurances from regulators.
• The currency pair is currently trading around the key rising trendline seen in the hourly chart and could suffer a deeper pullback to the 200-hour exponential moving average (EMA) of 6.9201 below the diagonal support line.
• The RSI on the hourly chart has dipped below 50.00 in bearish territory and the MAC is signaling that the bearish move is gathering pace. As a result, the rising trendline support could be breached in the next few hours.
• Only a move above 6.9470 (daily high + resistance on the hourly chart) would weaken the bearish setup.

Hourly Chart

Spot Rate: 6.9358

Daily High: 6.9470

Daily Low: 6.9310

Trend: Bearish

Resistance

R1: 6.947 (resistance on the hourly chart)

R2: 6.9521 (previous day's high)

R3: 6.9584 (yearly high)

Support

S1: 6.9323 (rising trendline support)

S2: 6.9201 (200-hour EMA)

S3: 6.90 (psychological support)