#USDCNH @ 6.96214 remains pressured at three-month low, down for the sixth consecutive day., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USD/CNH remains pressured at three-month low, down for the sixth consecutive day.
• Clear break of multi-day-old support line, bearish MACD signals favor sellers.
• Lows marked in October, November guard immediate upside.

The pair currently trades last at 6.96214.

The previous day high was 7.0198 while the previous day low was 6.9298. The daily 38.2% Fib levels comes at 6.9642, expected to provide resistance. Similarly, the daily 61.8% fib level is at 6.9855, expected to provide resistance.

USD/CNH bears keep the reins during early Tuesday, printing a six-day south-run around 6.9570 by the press time. In doing so, the offshore Chinese Yuan (CNH) pair justifies the previous week’s downside break of an ascending trend line from April.

Given bearish MACD signals favoring the USD/CNH pair’s trend line break, the sellers are well-set to challenge the monthly low marked the previous day around 6.9300.

Following that, September 10 swing low near 6.9100 may act as an intermediate halt during the likely fall towards a six-month-old ascending support line, close to 6.8940 at the latest.

In a case where USD/CNH remains bearish past 6.8940, the 50% Fibonacci retracement level of the pair’s run-up from late March to October, around 6.8600, will precede the 200-DMA support near 6.8015 to challenge the further downside.

Alternatively, recovery remains elusive unless the quote stays below the support-turned-resistance line stretched from April, near 7.0700 by the press time.

That said, an area comprising lows marked during November and October, around 7.0130-200, restricts the pair’s immediate upside.

It’s worth noting that multiple hurdles surrounding 7.2600-2700 could question the USD/CNH bulls before giving them control.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDCNH currently trading at 6.9558 at the time of writing. Pair opened at 6.9742 and is trading with a change of -0.26% % .

The pair is trading below its 20 Daily moving average @ 7.1262, below its 50 Daily moving average @ 7.1741 , below its 100 Daily moving average @ 7.0219 and above its 200 Daily moving average @ 6.7985

The previous day high was 7.0198 while the previous day low was 6.9298. The daily 38.2% Fib levels comes at 6.9642, expected to provide resistance. Similarly, the daily 61.8% fib level is at 6.9855, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 6.9294, 6.8846, 6.8394
• Pivot resistance is noted at 7.0194, 7.0646, 7.1094

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