USD/CNH battles key support to extend the pullback from the monthly top, down 0.11% intraday around $6.4750 ahead of Wednesday’s European session.
In doing so, the offshore Chinese currency (CNH) pair struggles to portray the optimism surrounding Evergande and the People’s Bank of China (PBOC) amid pre-Fed caution.
Technically, the quote remains pressured between a downward sloping trend line from late July and 200-DMA, respectively around $6.4875 and $6.4730.
Even as 23.6% Fibonacci retracement of May-July upside adds strength to the upside hurdle, USD/CNH failures to break the 200-DMA level of $6.4730 joins bullish MACD signals to keep buyers hopeful.
However, a clear upside break of $6.4875 becomes necessary to witness the advances targeting August month’s top near $6.5100.
While the $6.5000 round figure may offer an intermediate halt during the anticipated upside, the yearly peak marked in July around $6.5285 will lure the pair buyers afterward.
Alternatively, 38.2% and 50% Fibonacci retracement levels, respectively around $6.4600 and $6.4400, will be on the USD/CNH bear’s radar on the break of $6.4875 support.
In a case where the quote remains heavy past $6.4400, the monthly bottom near $6.4250-45 will be in focus.