USD/CNH Price Analysis: Monthly support line tests bears around 6.6600

• USD/CNH remains on the back foot around one-week low, sellers attack short-term key support.
• Downbeat RSI, clear break of 21-DMA signal further downside.
• Bulls need successful rise past 7.7850 to retake control.

USD/CNH extends the previous day’s losses around a one-week low, following a gap-down opening. However, an upward sloping support line from late April restricts the quote’s immediate downside near 6.6600.

Given the sustained break of the 21-DMA and downbeat RSI line, not oversold, USD/CNH prices are likely to conquer the immediate support line surrounding 6.6570.

Following that, the monthly bottom and late April swing low close to 6.6100 will gain the market’s attention.

In a case where USD/CNH prices fail to bounce off 6.6100, the odds of the pair’s further fall towards the 61.8% Fibonacci retracement level of late March to early May upside, near 6.5300 can’t be ruled out.

Meanwhile, an upside gap of nearly 150 pips below 6.7200 gets filled should the USD/CNH buyers return to the table.

Even so, a horizontal area comprising multiple levels marked since May 13, around 6.7850, appears a tough nut to crack for the bulls.

Overall, USD/CNH is likely to extend the latest weakness towards revisiting the monthly low.

USD/CNH: Daily chart

Trend: Further weakness expected