USD/CNH Price Analysis: Sidelined after bullish Doji reversal

USD/CNH's daily chart shows a bullish Doji reversal. The pair lacks a clear directional bias at press time amid an uptick in the S&P 500 futures. USD  |  13/07/2020 03:18

  • USD/CNH's daily chart shows a bullish Doji reversal. 
  • The pair lacks a clear directional bias at press time amid an uptick in the S&P 500 futures.

USD/CNH is struggling to gather upside momentum despite the bullish reversal pattern on the daily chart. 

The pair is currently sidelined near 7.00 and trading well within Friday’s range of 7.0168 to 6.9948.

Bull Doji reversal

The pair jumped 0.18% on Friday, marking a positive follow-through to the seller exhaustion signaled by Thursday’s Doji candle. 

Essentially, Friday’s rise has confirmed a bullish Doji reversal pattern on the daily chart. In other words, the pattern indicates that the sell-off from May 27 high of 7.1964 has ended and the bulls have regained control. 

So far, however, the bulls have remained on the sidelined, possibly due to fears that the US dollar, a preferred safe haven, may take a hit amid the uptick in the US stock futures. 

The bullish Doji reversal, however, would be invalidated only if the pair finds acceptance under Thursday’s low of 6.9809. 

Daily chart

Trend: Bullish 

Technical levels

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