#USDCNH @ 7.16632 holds lower ground near intraday bottom, snaps four-day uptrend., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/CNH holds lower ground near intraday bottom, snaps four-day uptrend.
• Bearish MACD signals favor sellers but 100-SMA acts as extra filter to the south.
• Monthly resistance line holds the key to buyer’s dominance.

The pair currently trades last at 7.16632.

The previous day high was 7.2598 while the previous day low was 7.194. The daily 38.2% Fib levels comes at 7.2347, expected to provide resistance. Similarly, the daily 61.8% fib level is at 7.2191, expected to provide resistance.

USD/CNH takes offers as bears attack 7.1800 to defy the fortnight-old bullish chart formation during early Tuesday. In doing so, the offshore China Yuan (CNH) prints the first daily loss in five.

That said, the Moving Average Convergence and Divergence (MACD) indicator hints at the pair’s further weakness as it flashes the bearish signals when sellers poke the support line of the upward-sloping trend channel, around 7.1780 by the press time.

It should be noted, however, that the 100-SMA level of 7.1600, acts as the extra challenge for the USD/CNH bears before taking control.

Following that, a southward trajectory towards the monthly low of 7.0194 can’t be ruled out. Also acting as the short-term key support is the previous monthly low near 7.0126.

Meanwhile, recovery moves could aim for the 7.2000 round figures before the stated channel’s upper line, close to 7.2780 at the latest.

In a case where the USD/CNH buyers keep the reins past 7.2780, the 7.2800 round figure and a downward sloping resistance line from late October, near 7.2820, could challenge the upside momentum before trying to refresh the record high marked in the last month.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDCNH currently trading at 7.1824 at the time of writing. Pair opened at 7.2484 and is trading with a change of -0.91% % .

The pair is trading below its 20 Daily moving average @ 7.1849, above its 50 Daily moving average @ 7.1796 , above its 100 Daily moving average @ 7.0071 and above its 200 Daily moving average @ 6.7802

The previous day high was 7.2598 while the previous day low was 7.194. The daily 38.2% Fib levels comes at 7.2347, expected to provide resistance. Similarly, the daily 61.8% fib level is at 7.2191, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 7.2084, 7.1684, 7.1427
• Pivot resistance is noted at 7.2741, 7.2998, 7.3398

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