USD/CNH Price Prediction: Trades above 23.6% Fibo., bulls seem non-committed near 7.1555

• USD/CNH attracts some buyers on Thursday and moves away from over a one-week low.
• The technical setup supports prospects for the emergence of fresh selling at higher levels. 
• A sustained strength beyond 50% Fibo. level is needed to negate the negative outlook.

The USD/CNH pair builds on the previous day's bounce from the 7.1305-7.1300 area, or over a one-week low and gains some follow-through positive traction during the Asian session on Thursday. Spot prices stick to modest intraday gains near the 7.1560 area, though the mixed technical set-up warrants some caution before positioning for any further appreciating move. 

The USD/CNH pair, so far, has been showing some resilience below the 23.6% Fibonacci retracement level of the July-August fall and the subsequent move up favors bullish traders. That said, oscillators on the daily chart are holding deep in negative territory and are still away from being in the oversold zone. Hence, any further positive move is more likely to attract fresh sellers near the 7.1845-7.1850 region and remain capped near the 7.1895-7.1900 area. 

The latter is followed by the 50% Fibo. level, around the 7.1975-7.1980 zone, which should now act as a key pivotal point. A sustained strength beyond the said barrier will suggest that the USD/CNH pair has bottomed out near the 7.0835 region, or the lowest level since June 2023 touched last week and pave the way for some meaningful appreciating move. 

On the flip side, the 7.1500 level is likely to protect the immediate downside, below which the USD/CNH pair could accelerate the fall back towards challenging the multi-month low, around the 7.0835 region. Some follow-through selling will be seen as a fresh trigger for bearish traders and set the stage for an extension of the recent sharp pullback from the YTD peak touched in July.

USD/CNH daily chart