USD/CNH has been guided by a descending channel since mid-October. The lower boundary of this medium-term pattern was tested late on Tuesday. However, a subsequent surge up was halted by the 55-hour SMA—a resistance barrier that was tested early today. Given that the pair failed to surpass this moving average already last week, it is likely that it hinders for several hours near this line and the 100-hour SMA, the weekly S3 and the monthly S1 in the 6.5540/6.5670 territory. The pair might even trade lower during the following hours, but it should eventually pick up speed and push towards the junior channel circa 6.59.
