#USDCNH @ 6.96931 consolidates the biggest daily gains in a month at one-week high., @nehcap view: Limited downside expected (Pivot Orderbook analysis)
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- USD/CNH consolidates the biggest daily gains in a month at one-week high.
- Bearish MACD signals keep sellers hopeful but 200/100 HMAs challenge further downside.
- Bulls need validation from the monthly high, the 7.0000 threshold.
The pair currently trades last at 6.96931.
The previous day high was 6.9846 while the previous day low was 6.911. The daily 38.2% Fib levels comes at 6.9565, expected to provide support. Similarly, the daily 61.8% fib level is at 6.9392, expected to provide support.
USD/CNH retreats to 6.9700 during Wednesday’s Asian session, after rising the most in a month to refresh the weekly the previous day.
In doing so, the offshore Chinese yuan (CNH) pair justifies the bearish MACD signals, as well as the RSI (14) pullback from the overbought territory.
However, a convergence of the 100-HMA and the 200-HMA around 6.9450 appears a tough nut to crack for the USD/CNH bears.
Should the quote drops below 6.9450, the 78.6% Fibonacci retracement level of the pair’s September 01-07 upside, near 6.9100 can’t be ruled out. However, the monthly low near 6.8870 could challenge the pair sellers afterward.
Alternatively, recovery moves need to cross the latest swing high surrounding 6.9850 to convince intraday buyers.
Following that, the monthly high near 6.9970 and the 7.0000 psychological magnet will be crucial to challenge the USD/CNH bulls.
In a case where the pair remains firmer past 7.0000, the late July 2020 high near 7.0300 will be in focus.
To sum up, USD/CNH is likely to witness further downside but the overall trend remains bullish.
Trend: Limited downside expected
Technical Levels: Supports and Resistances
USDCNH currently trading at 6.9706 at the time of writing. Pair opened at 6.9822 and is trading with a change of -0.17% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 6.9706 |
| 1 | Today Daily Change | -0.0116 |
| 2 | Today Daily Change % | -0.17% |
| 3 | Today daily open | 6.9822 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 6.9011, 50 SMA 6.8111, 100 SMA @ 6.7576 and 200 SMA @ 6.5635.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 6.9011 |
| 1 | Daily SMA50 | 6.8111 |
| 2 | Daily SMA100 | 6.7576 |
| 3 | Daily SMA200 | 6.5635 |
The previous day high was 6.9846 while the previous day low was 6.911. The daily 38.2% Fib levels comes at 6.9565, expected to provide support. Similarly, the daily 61.8% fib level is at 6.9392, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 6.934, 6.8857, 6.8604
- Pivot resistance is noted at 7.0076, 7.0329, 7.0812
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 6.9846 |
| Previous Daily Low | 6.9110 |
| Previous Weekly High | 6.9970 |
| Previous Weekly Low | 6.9176 |
| Previous Monthly High | 6.9326 |
| Previous Monthly Low | 6.7164 |
| Daily Fibonacci 38.2% | 6.9565 |
| Daily Fibonacci 61.8% | 6.9392 |
| Daily Pivot Point S1 | 6.9340 |
| Daily Pivot Point S2 | 6.8857 |
| Daily Pivot Point S3 | 6.8604 |
| Daily Pivot Point R1 | 7.0076 |
| Daily Pivot Point R2 | 7.0329 |
| Daily Pivot Point R3 | 7.0812 |
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