USD/CNY Price Analysis: Drops to one-week low, prints another lower high on the daily chart

• USD/CNY looks south with lower highs on the daily chart. 
• The 50-day SMA is the level to beat for the bulls.

USD/CNY fell to 6.4491 a few minutes before press time to hit the lowest level since Jan. 5, having faced rejection near 6.4920 on Monday. 

With the pullback, the pair has established yet another bearish lower high (shallow bounce) on the daily chart. Ever since it peaked above 7.00 in May last year, the pair has been printing lower highs and lower lows. 

The bias will remain bearish while the structure is held intact. If the immediate support at 6.4294 (Jan. 5 low) is breached, the focus would shift to 6.40, following which, the next major support is seen directly at 6.2419 (March 2018 low). 

A sustained move above the descending 50-day Simple Moving Average (SMA) is needed to confirm a bullish reversal. 

Daily chart

Trend: Bearish

Technical levels