USD/CNH Price Analysis: Signs of seller exhaustion on D1

• USD/CNH's daily MACD histogram shows downside move is running out of steam. 
• The pair may witness an oversold bounce in the short-term.  

USD/CNH is trading near 6.9112 at press time, representing marginal losses on the day, having put in a six-month low of 6.8936 on Friday. 

The People’s Bank of China raised the daily yuan fix to 6.9194 from 6.9107. So far, however, that has failed to lift USD/CNH (put the offshore yuan under pressure).

The daily chart MACD, an indicator used to gauge trend strength and trend changes, is now producing higher lows – a sign of weakening of the downward momentum. The long wicks attached to Friday’s candle also indicate bearish exhaustion. 

As such, a corrective bounce to former support-turned-resistance of 6.9643 (July 22 low) could be seen. Alternatively, an acceptance under Friday’s low of 6.8936 would signal a resumption of the sell-off. 

Daily chart

Trend: Corrective bounce likely

Technical levels