USD/CNH Price Analysis: Refreshes 17-month high amid overbought RSI

• USD/CNH rises to the highest levels since November 2020 despite USD pullback.
• Overbought RSI conditions, key Fibonacci retracement levels also challenge the bulls.
• 200-DMA, previous resistance from March 2021 appear strong support.

USD/CNH remains on the front foot around a 1.5-year high surrounding 6.6900 during Friday’s Asian session.

In doing so, the offshore Chinese yuan (CNH) ignores the overbought RSI conditions, as well as the broad US dollar pullback from a 20-year peak, marked the previous day, amid worsening covid conditions in China.

That said, a pullback remains elusive until the quote stays beyond the 38.2% Fibonacci retracement (Fibo.) of May 2020 to February 2022 downside, near 6.6500.

Following that, April 2021 peak close to 6.5870 and 23.6% Fibo. level near 6.5165 may lure the USD/CNH bears.

However, the 200-DMA and the resistance-turned-support line from early 2021, respectively around 6.4050 and 6.3985, will challenge the pair’s further downside.

On the contrary, a 50% Fibonacci retracement level of 6.7520 will be on the USD/CNH bull’s radar during the quote’s further upside.

Should the USD/CNH buyers remain dominant past 6.7520, the November 2020 peak of 6.7746 will be in focus.

USD/CNH: Daily chart

Trend: Pullback expected