USD/CNH is still showing willingness to move north, as it continues to balance above a short-term upside support line taken from the low of February 16th. That said, before we get comfortable with further upside, a break above the current highest point of this week, at 6.476, would be needed. Hence our cautiously-bullish approach for now.
If, eventually, the pair does make a run above that 6.476 barrier, this will confirm a forthcoming higher high, potentially clearing the path to some higher areas. We may then target the current highest point of February, at 6.488, which might provide a temporary hold-up. That said, if the buyers are still felling comfortable, they could overcome that obstacle and aim for the next potential resistance level, at 6.505, which is an intraday swing high of January 28th.
The RSI and the MACD are pointing higher again. The RSI remains above 50 and the MACD continues to run well above zero, despite sitting slightly below its trigger line. The two oscillators continue to show positive price momentum, which supports the above-discussed idea.
Alternatively, if the pair breaks the aforementioned upside line and then slides below the current low of today, at 6.452, that may spook new buyers from entering any time soon. More sellers could join in and drag the rate to the 6.442 obstacle, or even to the 6.429 level, marked by the low of February 18th.
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