USD/CNH Price Analysis: 6.48 remains a tough nut to crack for bulls

• USD/CNH edges lower on Thursday following disappointing China’s PMI data.
• Price attempts to take out 6.48 for two sessions but fails.
• MACD remains neutral near the midline and adopts a wait-and-watch approach.

USD/CNH fails to sustain the previous day’s gain on Thursday and retreats from the higher levels. The pair opened higher albeit fizzled out rather quickly to touch the intraday low at 6.4710. At the time of writing, USD/CNH is trading at 6.4718, down 0.08% for the day.

USD/CNH daily chart

On the daily chart, the USD/CNH has been facing downward pressure from the high of 6.5286 made on July 27.  If the price sustains below the intraday low it could test the 50-day Simple Moving Average (SMA) at 6.4687.

The Moving Average Convergence Divergence (MACD) indicator trades near the midline. Any downtick in the MACD would amplify the selling opportunity toward the 6.4600 horizontal support level. A break beneath the 20-day SMA at 6.4559, would mean the 6.4400 horizontal support line for USD/CNH bears.

Alternatively, a reversal in price movement would try to test the multiple resistance formation at the psychological 6.4900 level. A daily close above the mentioned level would confirm the dominance of the bulls over the price action.  Next, the market participants keep their eye on the 6.5000 horizontal resistance level followed by the high of July 28 at 6.5277.

USD/CNH additional levels