USD/CNH Price Analysis: Thursday’s Doji keeps sellers hopeful

• USD/CNH reverses early Asian losses following a bearish candlestick formation.
• MACD conditions, short-term falling trend line also favor sellers.
• Bulls need validation from 61.8% Fibonacci retracement, September’s low.

USD/CNH picks up bids to $6.3955, recovering early-day losses ahead of the European session on Friday.

The offshore Chinese currency (CNH) pair printed a bearish Doji candlestick the previous day,  challenging a continuation of the rebound from a four-month low flashed earlier in the week.

Also favoring the sellers is the quote’s sustained trading below a downward sloping trend line from October 12 and 61.8% Fibonacci retracement (Fibo.) level of May-July upside amid bearish MACD signals.

That being said, the USD/CNH prices may initially test the $6.3800 area during fresh downside ahead of challenging the monthly low of $6.3685.

Following that, the yearly low marked in May, around $6.3525, will be in focus.

Alternatively, the stated resistance line and the key Fibo. level, respectively near $6.4135 and $6.4200, will challenge the quote’s recovery moves.

It should be noted, however, that the USD/CNH bulls should remain cautious until the quote stays below September’s low of $6.4245.

USD/CNH: Daily chart

Trend: Further weakness expected