USD/CNH Technical Analysis: Flirting with 20-month ascending trendline

• USD/CNH is flirting with the support of the trendline rising from April 2018 highs. 
• A weekly close below the trendline would bolster the bearish setup and expose key Fibonacci support. 

USD/CNH (Offshore Yuan) pair is currently trading near 6.9786, which is the support of the trendline connecting April 2018 and April 2019 lows. 

A close below the ascending trendline would bolster the bearish setup represented by a below-50 reading on the 14-week relative strength index, descending 5- and 10-week averages and the lower highs, lower lows setup created over the last four months. 

A weekly close below the trendline would expose support at 6.8288 (38.2% Fib R of March 2018 low/August 2019 high). That looks likely as the CNH (offshore Yuan) is expected to remain bid on continued de-escalation of the Sino-US trade tensions. 

On the higher side, a weekly close above 7.0865 (November high) is needed to invalidate the lower highs set up and confirm a bullish reversal. 

Weekly chart

Trend: Bearish

Technical levels