USD/CNH Technical Analysis: Bounce could be short-lived

The USD/CNH is currently trading at 6.8690 - up 0.27 percent on the day - confirming an upside break of the falling trendline on the hourly chart. The bounce, however, could be short-lived, as the daily chart continues to call a move lower to 6.80.

Hourly chart

• As seen above, the falling trendline has been scaled, validating the bullish divergence of the relative strength index (RSI). The key MAs (50, 100 and 200), however, continue to trend lower in favor of the bears. As a result, the path of least resistance remains to the downside.

Daily chart

• The symmetrical triangle breakdown confirmed on Monday validated the bearish divergence of the 14-week RSI and opened the doors for 6.80 (23.6% Fib R of March low/November high).
• More importantly, the outlook as per the daily chart will remain bearish as long as the pair is trading below the descending 9bearish) 10-day MA, currently at

Trend: Bearish