#USDCNH @ 6.91787 has witnessed a recovery move to near 6.9200 after Caixin Services PMI failed to match estimates. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• USD/CNH has witnessed a recovery move to near 6.9200 after Caixin Services PMI failed to match estimates.
• Caixin Services PMI has landed at 56.4, marginally lower than the estimates of 56.5 and the former release of 57.8.
• Broadly, the USD Index is showing signs of volatility contraction ahead of the release of the US NFP data.

The pair currently trades last at 6.91787.

The previous day high was 6.9282 while the previous day low was 6.8962. The daily 38.2% Fib levels comes at 6.9084, expected to provide support. Similarly, the daily 61.8% fib level is at 6.916, expected to provide support.

The USD/CNH pair has shown a recovery move from 6.9100 amid the release of the downbeat Caixin Services PMI data (April). The economic data has landed at 56.4, marginally lower than the estimates of 56.5 and the former release of 57.8.

This week, the Caixin Manufacturing PMI also failed to stand on expectations. The Caixin Manufacturing PMI was released at 49.5, lower than the estimates of 50.3 and the former release of 50.0. Despite fiscal and monetary support the Chinese economy is struggling to remain on track of progress after dismantling pandemic controls.

This has raised concerns in the minds of investors over the pace of economic recovery in the Chinese economy. The economy is continuously facing pressure from the vulnerable real estate sector and subdued households’ demand.

S&P500 futures have added significant gains in the Asian session indicating an improvement in market sentiment. Investors are digesting the US banking jitters and are focusing more on optimism infused by neutral guidance from the Federal Reserve (Fed).

The US Dollar Index (DXY) has corrected to near 101.23 in the Tokyo session. On a broader note, the USD Index is showing signs of volatility contraction ahead of the release of the United States Nonfarm Payrolls (NFP) data. Investors are anticipating a decline in the number of job additions in April, however, upbeat labor market data could fuel the need of additional interest rate hikes by the Fed despite hints of pause that have already been delivered.

Technical Levels: Supports and Resistances

USDCNH currently trading at 6.9198 at the time of writing. Pair opened at 6.915 and is trading with a change of 0.07 % .

The pair is trading above its 20 Daily moving average @ 6.9055, above its 50 Daily moving average @ 6.9032 , above its 100 Daily moving average @ 6.8751 and below its 200 Daily moving average @ 6.9571

The previous day high was 6.9282 while the previous day low was 6.8962. The daily 38.2% Fib levels comes at 6.9084, expected to provide support. Similarly, the daily 61.8% fib level is at 6.916, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 6.8981, 6.8812, 6.8662
• Pivot resistance is noted at 6.93, 6.945, 6.9619

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group