#USDCNH @ 6.94144 eases from a one-week high to pare the previous day’s gain., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USD/CNH eases from a one-week high to pare the previous day’s gain.
• 100-DMA, support-turned-resistance from early February appears a tough nut to crack for bulls.
• Looming bear cross on MACD, steady RSI (14) hints at further grinding towards the previous resistance line.

The pair currently trades last at 6.94144.

The previous day high was 6.9522 while the previous day low was 6.8966. The daily 38.2% Fib levels comes at 6.931, expected to provide support. Similarly, the daily 61.8% fib level is at 6.9179, expected to provide support.

USD/CNH takes offers to extend the initial pullback from a one-week high, down 0.15% intraday near 6.9400 during Tuesday’s Asian session. In doing so, the offshore Chinese Yuan (CNH) pair consolidates the previous day’s gains amid downbeat oscillators and a failure to cross the key upside hurdle.

That said, the MACD signals lose their bullish bias and the bear cross seems to loom. On the same line, the RSI (14) also remains mostly steady and backs the latest weakness of the pair.

It’s worth noting that the failure to cross the 38.2% Fibonacci retracement level of the pair’s October 2022 to January 2023 fall, near 6.9560, triggered the quote’s latest pullback.

Apart from the immediate Fibonacci retracement hurdle, a convergence of the 100-DMA and an upward-sloping trend line from early February, the previous support line, close to 6.9800, appears a tough nut to crack for the USD/CNH bulls.

Meanwhile, pullback moves appear on the way to test the resistance-turned-support line from October 2022, close to 6.8550.

Following that, the late January swing high near 6.7950 could entertain the USD/CNH bears before directing them to the yearly low of 6.6975.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDCNH currently trading at 6.9398 at the time of writing. Pair opened at 6.9512 and is trading with a change of -0.16% % .

The pair is trading above its 20 Daily moving average @ 6.8791, above its 50 Daily moving average @ 6.8389 , below its 100 Daily moving average @ 6.9825 and above its 200 Daily moving average @ 6.9177

The previous day high was 6.9522 while the previous day low was 6.8966. The daily 38.2% Fib levels comes at 6.931, expected to provide support. Similarly, the daily 61.8% fib level is at 6.9179, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 6.9144, 6.8778, 6.8588
• Pivot resistance is noted at 6.97, 6.989, 7.0256

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