USD/CNH Price Analysis: Buyers face rejection near $6.4600

• USD/CNH remains muted on Friday following the previous day’s gain.
• Bears dominate trade as price stay pressurized below 20-day SMA.
• Downside in the pair is capped near $6.4270 on the daily chart.

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USD/CNH seems to be exhausted near the weekly high of $6.4609 on Friday.  The pair moves in a very narrow trade band with no meaningful traction.

At the time of writing, USD/CNH is trading at $6.4530, up 0.01% for the day.

USD/CNH daily chart

On the daily chart, the pair has broken the long term consolidation of $6.4525 on September 10 and touched the levels seen in June around $6.4270. USD/CNH recovered swiftly in the previous session’s upside momentum and pushed above $6.4600 weekly highs.

Furthermore, the descending trendline from the high of $6.5277 acts as a defence for the bulls. Now, if price is sustained above the intraday high, it could test back the high made on September 7 at $6.4648. 

The  Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any uptick in the MACD would amplify the buying pressure to the $6.4775 horizontal support level.

USD/CNH bulls would take the dare to test the $6.4990 horizontal resistance level if succeeded in a daily close above the bearish slop line.

Alternatively, a reversal in price movement would try to test the $6.4400 horizontal support level followed by the previous day’s low of $6.4264.

Next, the market participants keep their eye on the $6.4200 horizontal support level.

USD/CNH additional levels