Ella 
USD/CNH pared intraday losses around 7.2800 as Chinese offshore yuan (CNH) traders looked for fresh cues to sustain daily losses in early Monday trade. During this period, the offshore yuan has been boosted by the overall correction of the US dollar under the influence of the new round of stimulus news from the Chinese government.
USD/CNH’s break below a one-month support line, coupled with several failures to break through immediate resistance at the 10-day moving average, kept bears looking forward.
In addition, the MACD indicator will build a dead cross and the relative strength indicator (14) maintains a downward trend from the overbought area, which is also weighing on USD/CNH.
As such, USD/CNH appears poised to move further lower towards the late July swing high around 7.2370.
However, the 50-day moving average and rising support lines from late March (around 7.2260 and 7.1920, respectively) could be downside targets after that.
On the upside, a daily close above the 10-day moving average near 7.3020 would push USD/CNH towards the horizontal 5-month support reversal resistance around 7.3160.
Even so, a horizontal area of multiple tops from August 16 (near 7.2370-60) could test USD/CNH bulls before refreshing yearly highs.
