USD/CNY technical analysis: Bulls and bears jostle within triangle formation

• Triangle formation limits near-term moves.
• RSI indicates less momentum.

Even after portraying a lower high formation since last two-weeks, the USD/CNY pair is less likely to turn bearish unless clearing a fortnight old ascending support-line. The quote presently takes the rounds near 6.9025 during early Monday.

While 23.6% Fibonacci retracement of the pair’s rise from May 15 and a downward sloping trend-line can limit immediate upside near 6.9090 and 6.9157, buyers can aim for 6.9224 during further advances.

In a case where bulls keep dominating trade sentiment beyond May month high, October 2018 tops surrounding 6.9770 and 7.0000 psychological magnet can become their targets.

14-bar relative strength index (RSI) offers no clear signal as it seesaws in the normal region.

Alternatively, a downside break of 6.8965 support-line may trigger the quote’s fresh selling in the direction to 61.8% Fibonacci retracement near 6.8868.

It should also be noted that the pair’s decline below 6.8868 can avail 6.8750 as an intermediate halt during the drop to revisit mid-May bottom near 6.8647.

USD/CNY hourly chart

Trend: Sideways to positive