#USDCNH @ 7.27007 snaps two-day losing streak even as China’s Q3 GDP improved., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• USD/CNH snaps two-day losing streak even as China’s Q3 GDP improved.
• Short-term rectangle signals limited upside moves but sustained trading beyond 200-HMA favor buyers.
• Fortnight-old ascending trend line, bullish MACD signals also strengthen upside bias.

The pair currently trades last at 7.27007.

The previous day high was 7.284 while the previous day low was 7.2194. The daily 38.2% Fib levels comes at 7.244, expected to provide support. Similarly, the daily 61.8% fib level is at 7.2593, expected to provide support.

USD/CNH remains firmer around 7.2700 as bulls retake control during early Monday, after a two-day absence. In doing so, the offshore Chinese yuan (CNH) ignores recently firmer China data while staying inside a three-day-old rectangle formation.

That said, China’s Q3 GDP rose to 3.9% YoY versus 3.4% expected while September’s Industrial Output also increased by 6.3% in a year compared to 4.5% market forecasts. However, China Retail Sales eased to 2.5% YoY from 3.3% market expectations during September.

Also read: China GDP (YoY) Q3: 3.9% (exp 3.3% vs. prev 0.4%), Aussie remains volatile

Although the stated triangle’s upper line, around 7.2800 at the latest, challenges the USD/CNH bulls, the pair’s sustained trading beyond the two-week-old ascending trend line and the 200-SMA, respectively near 7.2180 and 7.2250, keep buyers hopeful. Also favoring the upside hopes are the bullish MACD signals.

However, the monthly high near 7.2840 and the 7.3000 psychological magnet may challenge the USD/CNH buyers going forward.

On the flip side, a clear break of the 200-SMA level surrounding 7.2180 could quickly direct the quote to the 50% and 61.8% Fibonacci retracement level of October 05-21 upside, near 7.1480 and 7.1160 in that order.

Trend: Further upside expected

Technical Levels: Supports and Resistances

USDCNH currently trading at 7.2696 at the time of writing. Pair opened at 7.2294 and is trading with a change of 0.56% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 7.1633, 50 SMA 7.0242, 100 SMA @ 6.8758 and 200 SMA @ 6.669.

The previous day high was 7.284 while the previous day low was 7.2194. The daily 38.2% Fib levels comes at 7.244, expected to provide support. Similarly, the daily 61.8% fib level is at 7.2593, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 7.2046, 7.1796, 7.14
• Pivot resistance is noted at 7.2692, 7.3088, 7.3338

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