USD/CNH Price Analysis: Pullback from previous support eyes monthly low

• USD/CNH prints three-day south-run, stays pressured around intraday low.
• Oversold RSI probes bears, 5-DMA guards immediate upside.

USD/CNH takes offers around $6.3775, down 0.10% intraday as European traders brace for Monday’s bell.

In doing so, the offshore Chinese currency (CNH) pair extends the previous week’s U-turn from a support-turned-resistance line from July towards the monthly low, also the lowest level since May.

It should be noted, however, that the oversold RSI conditions may challenge the USD/CNH bears around the five-month low of $6.3524, also the yearly bottom.

In a case where the pair sellers ignore RSI conditions and refresh the yearly low, bottom marked during the mid-May 2018 near $6.3195 may challenge the quote ahead of directing them to the $6.3000 threshold.

On the contrary, the 5-DMA level of $6.3855 challenges the quote’s immediate upside ahead of the stated resistance line, previous support, near $6.3990.

During the USD/CNH upside past $6.3990, September’s low around $6.4250-45 will gain the buyer’s attention.

USD/CNH: Daily chart

Trend: Further weakness expected