USD/CNH Technical Analysis: Eyes 10-day MA hurdle after defense of 23.6% Fib

• The USD/CNH's failure to penetrate the 6.78 (23.6% Fib R of 6.2353/6.9584) for three straight sessions could allow a corrective rally to 10-day moving average (MA) hurdle, currently seen at 6.8287.
• A failed pennant breakdown, seen in the hourly chart, also indicates there is scope for a corrective rally.

Hourly chart

Spot Rate: 6.8055

Daily High: 6.8068

Daily Low: 6.7883

Trend: Bullish

Resistance

R1: 6.8132 (pennant resistance)

R2: 6.8287 (10-day MA)

R3: 6.8560 (July 27 high)

Support

S1: 6.80 (psychological level)

S2: 6.7877 (23.6% Fib R of 6.2353/6.9584)

S3: 6.7569 (ascending 50-day MA)