USD/CNH Price Analysis: Remains above 7.3500 near two-year highs
- USD/CNH could approach initial resistance at 7.3697, marking the highest level since October 2022.
- The 14-day RSI remains below the 70 level, further supporting the sustained bullish bias.
- The immediate support zone is seen around the nine-day EMA at the 7.3435 level.
The USD/CNH pair retraces its two days of gains, trading around 7.3520 during the Asian hours on Friday. An analysis of the daily chart indicates that the price movement within the ascending channel pattern is intensifying, which points to a strengthening bullish trend.
The 14-day Relative Strength Index (RSI), a key momentum indicator, holds below the 70 level, reinforcing the ongoing bullish momentum. Moreover, the USD/CNH pair trades above both the nine-day and 14-day Exponential Moving Averages (EMAs), further suggesting robust short-term price momentum.
The USD/CNH pair could test primary resistance at 7.3697, the highest level since October 2022, reached on December 31. A break above this level could reinforce the bullish bias and support the pair to approach the upper boundary of the ascending channel at the 7.4150 level.
On the downside, the USD/CNH pair may initially test the nine-day Exponential Moving Average at the 7.3435 level, followed by the 14-day EMA at the 7.3348 level. A break below this level would weaken the short-term price momentum and lead the pair to navigate the area around the ascending channel’s lower boundary at the 7.2890 level.