USD/CNY technical analysis: 21-HMA limits immediate recovery inside ascending triangle

• Short-term ascending triangle supports gradual recovery.
• 21-HMA holds immediate moves confined.

Despite taking a U-turn from a fortnight-old ascending trend-line, USD/CNY moves are presently challenged by 21-HMA near 6.9110 during early Monday.

It should, however, be noted that short-term ascending triangle formation favors the bulls targeting 6.9150 and 6.9175 pattern resistance.

Though, pair’s rally past-6.9175 enables it to cross late-May high around 6.9225 and aim for 7.000 round-figure.

Alternatively, two nearby upward sloping trend-line around 6.9095 and 6.9070 seem to limit the quote’s immediate declines, if not then a fresh drop towards 38.2% Fibonacci retracement level of 6.8985 can’t be ruled out.

Additionally, pair’s extended south-run under 6.8985 can drag prices to sub-6.8900 area.

USD/CNY hourly chart

Trend: Pullback expected