USD/CNH Price Analysis: Battles previous support around 6.40 on China data

• USD/CNH fades recovery moves following mixed trade numbers from China.
• Risk-off mood, sustained trading above 200-HMA favor buyers.

USD/CNH seesaws within a 40-pips trading range below 6.40 following trade data release on early Monday. In doing so, the Chinese currency pair struggles to extend the late Friday’s recovery moves as buyers attack the previous support line from May 31.

China’s headline Trade Balance eased from $50.50 B market consensus to $45.53 B in May. Details suggest the Exports dropped below 41.6% expected and 32.3% previous readouts to 27.6% but the Imports grew matched 51.5% upbeat forecasts.

Read: China’s May Trade Balance: Surplus and exports grow, miss estimates

Other than the mixed trade numbers, downbeat market sentiment also challenge USD/CNH sellers, rather confusing traders.

Read: S&P 500 Futures drop back below 4,250 amid mixed clues

Technically, upbeat RSI conditions join sustained trading beyond 200-HMA to favor USD/CNH buyers to overcome the immediate hurdle of around 6.40. However, any further upside needs to refresh the monthly top near 6.41 before convincing the bulls.

Meanwhile, USD/CNH sellers are less likely to enter until the quote stays beyond the 200-HMA level of 6.3820.

Overall, USD/CNH recovery falters below short-term key hurdle but bears aren’t convinced.

USD/CNH hourly chart

Trend: Further recovery expected