USD/CNH Price Analysis: 5-Week SMA caps upside

• USD/CNH's weekly chart shows seller fatigue at multi-year lows. 
• The descending or bearish 5-week SMA restricts upside. 

USD/CNH looks oversold, but so far, a notable corrective bounce has remained elusive. 

The currency pair is trading near 6.4680 at press time, having failed to take out the 5-week Simple Moving Average (SMA) 6.4889 on Monday. The pair printed a 31-month low of 6.4119 last week. 

The long-tail attached to the previous weekly candle indicates seller fatigue and validates the below-30 or oversold reading on the Relative Strength Index. 

Also, the weekly chart MACD histogram is charting higher lows below the zero line in a sign of weakening of the bearish momentum. 

As such, the immediate bearish bias stands neutralized. A close above the lower high of 6.5530 (Dec. 21 high) would signal a short-term bearish-to-bullish trend change. Meanwhile, the last week's low of 6.4119 is the level to beat for the sellers. 

Weekly chart

Trend: Neutral

Technical levels