#USDCNH @ 7.26901 is eyeing a test of a weekly high at 7.2790 amid a vulnerable market mood. (Pivot Orderbook analysis)

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• USD/CNH is eyeing a test of a weekly high at 7.2790 amid a vulnerable market mood.
• The DXY has refreshed the day’s high at 113.12 amid an improvement in safe-haven appeal.
• An unchanged PBOC’s monetary policy has kept yuan bulls on the tenterhooks.

The pair currently trades last at 7.26901.

The previous day high was 7.2792 while the previous day low was 7.221. The daily 38.2% Fib levels comes at 7.2433, expected to provide support. Similarly, the daily 61.8% fib level is at 7.257, expected to provide support.

The USD/CNH pair has shifted its business above the crucial hurdle of 7.2600 after a perpendicular rally from Thursday’s low of 7.2209. The asset is marching vigorously towards the weekly high of 7.2790 as the risk-off impulse has rebounded firmly after a minor optimism. A pullback move in S&P500 futures has terminated and the index futures have started their downside journey.

The US dollar index (DXY) has refreshed its day’s high at 113.12 as negative market sentiment has resulted in a flight of safety at the safe-haven counter for the market participants. Now, the DXY is aiming to test the weekly high at 113.21. Returns on US government bonds are buzzing in the global markets after overstepping figures recorded at the time of the sub-prime crisis. The 10-year US Treasury yields have printed a fresh 14-year high at 4.26%.

Meanwhile, investors are shifting their focus toward the S&P PMI data, which will release on Monday. Earlier, the Manufacturing PMI landed at 52.0 while the Services PMI was recorded at 49.3.

On the China front, an unchanged monetary policy by the People’s Bank of China (PBOC) has kept the Chinese yuan on the tenterhooks. The central bank maintained the status quo despite the headwinds of weaker economic prospects and sluggish price pressures. Also, the real estate demand is extremely vulnerable, which needed a booster dose.

Meanwhile, oil prices have turned sideways after a correction below $85.00 as soaring yields have bolstered signs of recession ahead. It is worth noting that China is a leading import of oil and subdued oil prices could retreat the major.

Technical Levels: Supports and Resistances

USDCNH currently trading at 7.2682 at the time of writing. Pair opened at 7.2556 and is trading with a change of 0.17 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 7.1587, 50 SMA 7.0144, 100 SMA @ 6.8701 and 200 SMA @ 6.6647.

The previous day high was 7.2792 while the previous day low was 7.221. The daily 38.2% Fib levels comes at 7.2433, expected to provide support. Similarly, the daily 61.8% fib level is at 7.257, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 7.2247, 7.1938, 7.1665
• Pivot resistance is noted at 7.2829, 7.3102, 7.3411

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