On August 6, the USD/CNH currency pair reached the 2018/2019 maximum at the 7.1320 mark.
As apparent on the chart, the exchange rate is trading at the 7.0700 mark. Given, that the rate is supported by the 55-, 100– and 200-hour moving averages, currently located circa 7.0600, it is likely, that some upside potential could prevail in the market in the short run.
However, if the given maximum holds, it is likely, that a reversal south could follow. In this case, the pair could gain the support of the monthly R3 located at the 7.0448 mark. It is unlikely, that the rate could drop lower than the Fibonacci 23.60% retracement at 6.9216.
