USD/CNH Price Analysis: Grinds within key SMA envelope around 6.9200

• USD/CNH remains sidelined between 200-SMA and 50-SMA, portrays bullish megaphone trend-widening formation.
• Bullish MACD signals, sustained trading above 200-SMA keep offshore Chinese Yuan sellers hopeful.
• USD/CNH bears need validation from 6.8500 to retake control.

USD/CNH stays defensive around 6.9200 as offshore Chinese Yuan (CNH) traders seek fresh clues to extend the previous corrective bounce during early Monday.

In doing so, the USD/CNH price seesaws within an area comprising 200-SMA and 50-SMA, currently between 6.8950 and 6.9310 in that order.

It should be noted, however, that the USD/CNH pair portrays a six-week-old bullish megaphone chart pattern that suggests the quote’s further grinding towards the north. Furthermore, bullish MACD signals also keep the pair buyers hopeful.

That said, the USD/CNH pair’s upside clearance of the 50-SMA hurdle of 6.9310 can prod the stated megaphone’s top line surrounding 6.9740-50.

However, the Year-To-Date (YTD) high marked in March around 6.9970 and the 7.000 psychological magnet can challenge the USD/CNH pair’s further upside.

On the flip side, the 6.9000 round figure restricts the short-term downside of the USD/CNH pair ahead of the 200-SMA level of around 6.8950.

Following that, the stated trend-widening pattern’s lower line surrounding 6.8500 will be crucial to watch as a clear break of the same can defy the bullish formation and trigger the pair’s south-run by targeting the previous month's low of around 6.8300.

Overall, USD/CNH remains on the bull’s radar despite the latest sluggish moves.

USD/CNH: Four-hour chart

Trend: Further upside expected