USD/CNH Price Analysis: Holds 6.95 despite bear cross on D1

• USD/CNH's daily chart shows an impending bear cross of 100- and 200-day averages. 
• The path of least resistance is to the lower side. 

USD/CNH is currently trading at 6.9652, representing moderate gains on the day, having hit a low of 6.95 earlier today. 

The pair held on to that psychological support despite the impending bear cross between the 100- and 200-day moving averages (MAs).  The negative cross would be confirmed on  Wednesday. 

Long-term MA crossovers are lagging indicators and have limited predictive powers at best. That said, the broader setup in USD/CNH is currently bearish. As discussed Monday, the pair is looking south, having faced rejection at the weekly chart bearish channel resistance. 

Additionally, the 14-day relative strength index is reporting bearish conditions with a below-50 print. 

The impending bear cross, therefore, could bolster the bearish setup and invite stronger selling pressure. 

So, the support at 6.95 could give in, yielding a drop to 6.90. On the higher side, a close above the 10-day average at 7.0071 is needed to invalidate the immediate bearish case. 

Daily chart

Trend: Bearish

Technical levels