USD/CNH Price Analysis: Reverses from two-year high towards 6.8500 but bears are far

• USD/CNH takes offers to refresh intraday low around the highest levels since August 2020.
• Sustained trading beyond May’s peak, bullish MACD signals favor buyers.
• Ascending resistance line from April 2021 lures buyers, two-month-old previous trend line resistance adds to downside filters.

USD/CNH stands on slippery grounds near 6.8565 as it consolidates the recent gains around the highest levels in two years during Thursday’s Asian session.

Even so, the offshore Chinese yuan (CNH) pair remains well above the previously key resistances, which in turn joins the bullish MACD signals to keep buyers hopeful.

That said, May 2022 high near 6.8385 appears the immediate support for the USD/CNH bears to watch. It’s worth noting that a two-week-old support line near 6.8340 could also restrict the pair’s short-term downside.

In a case where the quote drops below 6.8340, it can approach the resistance-turned-support line from late May, close to the 6.8000 psychological magnet.

Meanwhile, recovery moves may initially aim for the latest peak of 6.8876 before targeting the 6.9000 round figure.

Following that, an upward sloping resistance line from April 2021, close to 6.9030 at the latest, appears the important hurdle for the USD/CNH bulls to cross.

It should be noted that the pair’s successful run-up beyond 6.9030 could help it aim for the late 2018 peak surrounding 6.9800.

USD/CNH: Daily chart

Trend: Bullish