USD/CNH Price Analysis: Rejected at bearish channel hurdle, looks south

• USD/CNH has turned lower from a bearish channel hurdle. 
• The pair could challenge support at 6.90 in the near-term.

The path of least resistance for the offshore Yuan or CNH appears to be on the higher side, according to USD/CNH's technical chart. 

The pair is trapped in a falling channel on the weekly chart. The dollar bulls have failed to take out the channel resistance for consecutive weeks. 

More importantly, the pair ended last week on a negative note, forming a big red candle with a small upper wick, representing rejection at the bearish channel hurdle. The candlestick suggests the sellers have regained control and could push the spot down to 6.90 in the near-term. 

At press time, USD/CNH is trading at 6.96, representing a 0.15% drop on the day. A channel breakout on the weekly chart is needed to put the bulls back into the driver's seat. 

Weekly chart

Trend: Bearish

Technical levels