USD/CNH Technical Analysis: Eyes fresh 2018 highs

• The USD/CNH is looking north as China's surprise rate cut has bolstered the bullish technical setup.
• The currency pair bottomed out along the 34-day exponential moving average (EMA) in mid September. The 5-day and 10-day EMAs are again trending north in favor of the bulls.
• The 14-day relative strength index (RSI) is also biased toward the bulls, having bottomed out around 50.00 in the last few weeks.
• The MACD has produced a bullish crossover, signaling the bullish move is gathering pace.
• The pair could soon set fresh yearly highs above 6.9584.

Daily Chart

Spot Rate: 6.9278

Daily High: 6.9347

Daily Low: 6.9163

Trend: Bullish

Resistance

R1: 6.9374 (previous day's high)

R2: 6.9584 (yearly high)

R3: 6.9861 (December 2016 high)

Support

S1: 6.9163 (support on the hourly chart)

S2: 6.9050 (100-hour EMA)

S3: 6.8904 (support of Oct. 5 low on the hourly chart)