USD/CNH struggles to extend a three-day uptrend as it retreats from the highest levels in nearly eight months on the key Federal Open Market Committee (FOMC) monetary policy meeting day. That said, the offshore Chinese Yuan (CNH) pair prints mild losses near 7.1720 by the press time, after rising to the highest levels since April 2022 with the latest peak of 7.1788.

It’s worth noting that the overbought RSI conditions join the pre-Fed anxiety to challenge the USD/CNH traders within a one-week-old rising trend channel, currently between 7.2020 and 7.1350 at the latest. Adding strength to the 7.1350 support level is the 50-SMA.

In a case where the USD/CNH drops below 7.1350, the previous resistance line stretched from late April, close to 7.0680, will precede a two-month-old rising support line, surrounding 7.0570 as we write, to please the offshore Chinese Yuan buyers.

However, the 200-SMA level of 7.0380 acts as the last defense of the USD/CNH bulls before giving control to the bears.

On the flip side, USD/CNH run-up needs validation from the latest high of around 7.1788, as well as the 7.1800 round figure.

Following that, the 7.2000 psychological magnet may prod the pair buyers before directing them to the short-term rising channel’s top line, close to 7.2020.

Should the offshore Chinese Yuan (CNH) remains bearish past 7.2020, the odds of witnessing the pair’s rally towards the late November 2022 peak of near 7.2600 can’t be ruled out