USD/CNH technical analysis: On its way to 7-week-old horizontal resistance

• USD/CNH trades successfully beyond short-term key supports.
• A horizontal area surrounding 7.14 limits the pair’s upside since early-August.
• 7.00 becomes crucial support.

With its sustained trading above nearby key supports, USD/CNH takes the bids to 7.1132 during early Tuesday.

As a result, pair’s one-week-old recovery seems to target nearly seven-week long horizontal resistance region near to 7.1400.

Should prices manage to clear 7.1400 on a daily closing basis, 7.1800, 7.1970 and 7.2000 could lure buyers.

On the downside, 23.6% Fibonacci retracement of July-September upside, at 7.1080 acts as the closest support ahead of 10-day exponential moving average (EMA) level of 7.1035 and an upward sloping trend-line since September 13, at 7.0950.

In a case where the quote declines below 7.0950, 38.2% Fibonacci retracement level of 7.0525 and monthly bottom near 7.0310 can entertain sellers.

Though, bears can only dominate if manage to break 7.000 round-figure that also comprises mid-August lows.

USD/CNH daily chart

Trend: bullish