USD/CNH Price Analysis: Retreats towards 200-HMA as bears flirt with 6.7600

• USD/CNH extends the previous day’s pullback from the highest levels since mid-May.
• 200-HMA, 61.8% Fibonacci retracement lures sellers amid steady RSI.
• Weekly horizontal area restricts immediate upside moves ahead of the monthly peak.

USD/CNH takes offers to refresh the intraday low around 6.7680 during Wednesday’s Asian session, extending the previous day’s pullback from a multi-day top.

With the offshore China yuan (CNH) pair’s pullback on Tuesday, the quote highlighted the importance of the weekly horizontal resistance area surrounding 6.7850. Also favoring the bearish bias is the RSI (14) during the latest weakness.

Hence, the USD/CNH sellers are well in condition to break the immediate support near the 200-HMA, at 6.7600 by the press time.

However, the 61.8% Fibonacci retracement of July 29 to August 02 upside and the short-term rising trend line, near 6.7545 and 6.7535 in that order, could challenge the USD/CNH bears afterward.

On the flip side, the pair buyers need validation from the weekly horizontal resistance zone near 6.7850 to retake control.

Following that, the 6.8000 threshold and the monthly peak of 6.7955 will be crucial to watch for the pair buyers.

Overall, USD/CNH is on the bear’s radar but the downside appears limited.

USD/CNH: Hourly chart

Trend: Limited downside expected