Ella 
USD/CNH rallied for a third straight day on Wednesday, climbing to a more than one-week high near 7.3125 during the Asian session. Meanwhile, technicals appear to favor bullish traders and support prospects for an extension of the recent rebound from the near two-week low near 7.2595 hit last Friday.
The pair is holding above the technically important 50-day, 100-day and 200-day simple moving averages (SMA), which reinforces the constructive outlook for the pair. Nonetheless, the oscillators on the daily chart have yet to confirm a positive bias, so caution should be exercised before entering into aggressive positions ahead of the much-anticipated FOMC monetary policy decision, which will be released later in the U.S. session.
Meanwhile, strength beyond the 7.310 level could set the stage for more gains, but any subsequent advance is likely to encounter resistance around the 7.3360-7.3365 area, leading towards a test of the 7.3495 area. Some follow-through buying beyond the 7.3500 level should allow USD/CNH to accelerate higher and further challenge the multi-year highs hit on September 8 around 7.3680-7.3685.
Sustained strength above this level would serve as a new trigger for the bulls and pave the way for USD/CNH to continue its good run since the start of the year.
On the other hand, horizontal support at 7.2985-7.2885 should protect the near-term downside near the 7.2800 round figure and last Friday’s low of 7.2595. Following closely is the 50-day moving average, currently around 7.2435, which if cleared decisively could trigger aggressive technical selling and drag USD/CNY below the 7.2390 area or monthly lows to test 7.2135- The next relevant support is around 7.2130.
