#USDCNH @ 6.98856 picks up bids to extend early week rebound from the key Fibonacci retracement level., @nehcap view: Pullback expected (Pivot Orderbook analysis)

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• USD/CNH picks up bids to extend early week rebound from the key Fibonacci retracement level.
• Convergence of 100-DMA, previous support line from October challenges buyers.
• MACD, RSI conditions suggest further hardships for bulls.

The pair currently trades last at 6.98856.

The previous day high was 7.0002 while the previous day low was 6.9504. The daily 38.2% Fib levels comes at 6.9812, expected to provide support. Similarly, the daily 61.8% fib level is at 6.9695, expected to provide support.

USD/CNH prints a two-day uptrend around 6.9870 while extending the week-start rebound from the lowest levels in three months.

That said, the offshore Chinese Yuan (CNH) pair prints mild gains while defending the bounce off the 61.8% Fibonacci retracement level of the August-October upside.

Although the recovery moves from the key Fibonacci retracement level, also known as the golden ratio, teases the USD/CNH bulls, the downbeat RSI (14) and bearish MACD signals challenge the quote’s further upside.

Also raising doubts on the USD/CNH run-up is the joint of the 100-DMA and the support-turned-resistance line from October, near 7.0265-70.

It’s worth noting that the pair’s advances past 7.0270 need validation from the 50% Fibonacci retracement level surrounding 7.0465 before giving control to the buyers.

In that case, a gradual run-up towards the late October swing low near 7.1660 can’t be ruled out.

Alternatively, a daily closing below the 61.8% Fibonacci retracement level of 6.9688 could quickly drag the USD/CNH prices to the latest trough surrounding 6.9300.

Following that, the lows marked during mid-September, close to 6.9100, acts as the last defense of the USD/CNH bulls.

Trend: Pullback expected

Technical Levels: Supports and Resistances

USDCNH currently trading at 6.9872 at the time of writing. Pair opened at 6.9804 and is trading with a change of 0.10% % .

The pair is trading below its 20 Daily moving average @ 7.1135, below its 50 Daily moving average @ 7.1701 , below its 100 Daily moving average @ 7.0242 and above its 200 Daily moving average @ 6.8018

The previous day high was 7.0002 while the previous day low was 6.9504. The daily 38.2% Fib levels comes at 6.9812, expected to provide support. Similarly, the daily 61.8% fib level is at 6.9695, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 6.9539, 6.9273, 6.9041
• Pivot resistance is noted at 7.0037, 7.0269, 7.0535

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