Chartbook: Chart USD/CNH: Remains under pressure, but stretched

Prices remains under pressure in Q3 but bearish momentum slows as prices edge lower towards the 6.7000 level within a falling wedge pattern from the March high. 

While the downside remains in focus, bullish divergence on weekly studies caution scope for corrective bounce within the wedge pattern to resistance at 6.7400 previous low and extending to 6.7540, June low. Break above the latter will open up room for stronger gains to the 6.8000 figure where reaction can be expected. Gains above here, if seen, will see room for stronger bounce to the 6.8200/6.8500, June and late-April highs as well as 50-61.8% Fibonacci retracement of losses from the top of the wedge pattern at the March high.

Meanwhile, support is at the 6.7000 figure and 2023 year low. Break here will see continuation to the 2019 year low at 6.6700. Below here, if seen, will open up room to 6.6500 congestion and 6.6000 level.