USD/CNH Price Analysis: Yuan buyers struggle around monthly trend line near 7.3000 as US PMIs loom

• USD/CNH fades bounce off one-month-old rising support line as markets brace for US PMI.
• Mildly positive concerns backed by China, looming bear cross on MACD lure Yuan pair sellers.
• Upside remains elusive below nine-month-old ascending resistance line.
• Preliminary US PMIs for August, risk catalysts eyed for fresh impetus.

USD/CNH holds lower grounds near 7.2970 as it pokes a one-month-old support line early Wednesday. In doing so, the offshore Chinese Yuan (CNH) pair reverses the previous day’s corrective bounce amid the market’s consolidation for today's US PMIs, backed by China-induced cautious optimism.

Also read: S&P500 Futures recover, yields extend pullback from multi-year high as traders brace for PMI amid China hopes

However, the nearly oversold RSI and an impending bear cross on the MACD indicator suggest a pullback in the USD/CNH prices, which in turn allows the pair to break the immediate support line surrounding 7.2850.

Following that, the 50-DMA support 7.2170 acts as the final defense of the USD/CNH buyers before directing the quote towards the 61.8% Fibonacci retracement of October 2022 to January 2023 downside, near 7.1170.

On the other hand, firmer prints of the US PMIs and a blow to the recent recovery in the sentiment may propel the USD/CNH prices, which in turn could resume the pair’s upside towards an ascending resistance line from late December 2022, close to 7.3520 at the latest.

In a case where the USD/CNH traders ignore overbought RSI and the MACD conditions, the Yuan pair will aim for the 15-year high marked in October 2022 around 7.3415.

USD/CNH: Daily chart

Trend: Pullback expected