USD/CNH technical analysis: Golden crossover confirmed

• USD/CNH's daily chart shows a golden crossover – a bullish moving average indicator. 
• The low of 6.8970 reached on May 27 is the level to beat for sellers. 

USD/CNH's 50-day average has crossed above its 200-day average, confirming a golden crossover – a long-term bullish indicator.

The pair had rallied from 6.6679 to 6.98 in 3.5 months following the confirmation of the golden crossover on July 11, 2018.

With the 14-day relative strength index (RSI) biased bullish at 64.30, the pair has room to cheer the latest golden crossover with a move above the psychological level of 7.00.

Notably, technical developments support the recent bullish forecasts by investment banks. For instance, Goldman Sachs expects China's Yuan to drop to 7.05 per US Dollar in three months.

The outlook, however, would turn bearish if the pair finds acceptance below 6.8970 (May 27 low).

Daily chart

Trend: Bullish

Pivot levels