USD/CNH Price Analysis: Extends bounce off weekly low towards 6.6400 on downbeat China data

• USD/CNH snaps two-day downtrend, picks up bids to poke intraday high.
• China’s Caixin Services PMI dropped to the lowest levels in two years.
• 21-SMA lures immediate upside moves, bears need validation from 6.6090.

USD/CNH takes the bids to refresh intraday high around 6.6325, up 0.23% on a day, after China’s Caixin Services disappointed traders during early Thursday.

That said, the aforementioned private services gauge not only dropped below42.0 previous readouts but also slumped to the 25-month low while flashing a 36.2 figure for April 2022.

Read: China Caixin Services miss caps AUD advance

Softer data helps USD/CNH to extend the early Asian session rebound from one-week-old horizontal support.

Given the firmer RSI support the latest recovery moves from the short-term key support, USD/CNH braces for a 21-SMA level of 6.6583.

However, descending trend line from Tuesday, near 6.6630, will challenge the USD/CNH bulls afterward, a break of which will direct prices towards the weekly resistance line near 6.7000.

Meanwhile, pullback moves remain elusive until staying beyond the April 29 high of 6.6090.

Following that, the 6.6000 threshold may test bears before directing them to the 6.5450 level comprising lows marked on April 24.

USD/CNH: Four-hour chart

Trend: Further recovery expected