#USDCNH @ 6.92392 remains pressured for third consecutive day despite bouncing off intraday low at the latest., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/CNH remains pressured for third consecutive day despite bouncing off intraday low at the latest.
• RSI retreat backs offshore Chinese Yuan pair’s U-turn from 200-DMA, 38.2% Fibonacci retracement.
• Five-week-old horizontal support restricts immediate downside ahead of the key support line stretched from early February.

The pair currently trades last at 6.92392.

The previous day high was 6.9468 while the previous day low was 6.921. The daily 38.2% Fib levels comes at 6.9309, expected to provide resistance. Similarly, the daily 61.8% fib level is at 6.937, expected to provide resistance.

USD/CNH bears keep the reins for the third consecutive day on early Friday, down 0.10% intraday near 6.9250 by the press time. In doing so, the offshore Chinese Yuan (CNH) pair ignores the latest rebound from the intraday low while keeping the early-week U-turn from the key upside hurdle.

Not only the failure to cross the 200-DMA and 38.2% Fibonacci retracement level of the USD/CNH pair’s fall from October 2022 to January 2023 but the RSI (14) retreat from overbought territory also suggests a further decline of the quote.

However, a horizontal area comprising multiple levels marked since March 20, between 6.9070 and 6.9130, restricts the immediate downside of the USD/CNH pair.

Following that, an upward-sloping support line from February 02, close to 6.8850, will be in the spotlight. In a case where the USD/CNH price stays weaker past 6.8850, the 100-DMA level of 6.8760 can act as the last defense of the buyers.

Alternatively, recovery moves need to cross the aforementioned 6.9540-50 resistance confluence to convince USD/CNH bulls.

Even so, the four-month-old descending resistance line near 6.9800 can prod the pair buyers before suggesting a clear bullish trend.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDCNH currently trading at 6.9234 at the time of writing. Pair opened at 6.9304 and is trading with a change of -0.10% % .

The pair is trading above its 20 Daily moving average @ 6.8921, above its 50 Daily moving average @ 6.899 , above its 100 Daily moving average @ 6.8772 and below its 200 Daily moving average @ 6.9526

The previous day high was 6.9468 while the previous day low was 6.921. The daily 38.2% Fib levels comes at 6.9309, expected to provide resistance. Similarly, the daily 61.8% fib level is at 6.937, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 6.9187, 6.907, 6.8929
• Pivot resistance is noted at 6.9445, 6.9586, 6.9703

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