USD/CNH had a bearish start on Thursday, with the price remaining below the crucial support of the 6.9000 level and the 40-day simple moving average (SMA).
From the technical point of view, the RSI is heading down in bearish territory, while the MACD also supports a bearish picture, since it continues to hold near the zero level and below the trigger line.
Should prices drop below the 6.8300 low, they could hit the 23.6% Fibonacci retracement level of the upward movement from 6.2350 to 6.9781, near 6.8030. An extension of the bearish structure would open the way towards the 6.7600 psychological level, identified by the inside swing top on April 25.
If the market manages to pick up speed, the 6.9000 resistance and the 20-day simple moving average (SMA), currently at 6.9069 could offer nearby resistance. Above these levels, the 6.9580 level could act as a strong obstacle as well, before turning the focus to the ten-month high of 6.9781.
In the long-term, the outlook remains neutral since prices have failed to post a clear tendency. However, the expectation is a negative movement in the very short-term, as long as the moving averages are ready for bearish cross.
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