The USD/CNH pair has fallen to a new low for the past 10 weeks after breaking through an important level of support. It is predicted that the pair will continue to decline in the future.
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- USD/CNH drops to the fresh 10-week low on breaking short-term key support.
The pair currently trades last at 7.13015.
The previous day high was 7.1642 while the previous day low was 7.1364. The daily 38.2% Fib levels comes at 7.1536, expected to provide resistance. Similarly, the daily 61.8% fib level is at 7.1471, expected to provide resistance.
USD/CNH takes offers to refresh the 2.5-month low around 7.1160, bouncing off 7.1210 by the press time of very early Thursday morning in Europe.
In doing so, the offshore Chinese Yuan (CNH) justifies the quote’s downside break of a 10-week-old rising support line, now immediate resistance around 7.1320.
That said, bearish MACD signals and the broad US Dollar weakness, amid expectations of no more rate hikes from the top-tier central banks keep the USD/CNH bears hopeful.
With this, the US Dollar Index (DXY) fails to cheer the Federal Reserve’s (Fed) hawkish rate hike amid fears of a sooner end to the tightening spell.
On the contrary, downbeat prints of China’s Industrial Profit for the January-June period, down 16.8% compared to an 18.8% fall in the profits during the first five months of the year 2023, per China’s National Bureau of Statistics (NBS) data released early Thursday.
It should be noted that a clear downside break of the stated support line and aforementioned oscillators, as well as fundamentals, favor the USD/CNH bears to aim for a four-month-old rising support line, close to 7.0730 by the press time.
On the contrary, an upside break of the previous support line, close to 7.1320, isn’t going to welcome the USD/CNH bulls as the 50-DMA and a one-month-old falling resistance line challenge the north-run around 7.1640 and 7.2150 in that order.
Trend: Further downside expected
Technical Levels: Supports and Resistances
USDCNH currently trading at 7.1254 at the time of writing. Pair opened at 7.153 and is trading with a change of -0.39% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 7.1254 |
| 1 | Today Daily Change | -0.0276 |
| 2 | Today Daily Change % | -0.39% |
| 3 | Today daily open | 7.153 |
The pair is trading below its 20 Daily moving average @ 7.2062, below its 50 Daily moving average @ 7.1622 , above its 100 Daily moving average @ 7.0338 and above its 200 Daily moving average @ 7.0055
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 7.2062 |
| 1 | Daily SMA50 | 7.1622 |
| 2 | Daily SMA100 | 7.0338 |
| 3 | Daily SMA200 | 7.0055 |
The previous day high was 7.1642 while the previous day low was 7.1364. The daily 38.2% Fib levels comes at 7.1536, expected to provide resistance. Similarly, the daily 61.8% fib level is at 7.1471, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 7.1382, 7.1234, 7.1104
- Pivot resistance is noted at 7.166, 7.179, 7.1938
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 7.1642 |
| Previous Daily Low | 7.1364 |
| Previous Weekly High | 7.2368 |
| Previous Weekly Low | 7.1484 |
| Previous Monthly High | 7.2856 |
| Previous Monthly Low | 7.0668 |
| Daily Fibonacci 38.2% | 7.1536 |
| Daily Fibonacci 61.8% | 7.1471 |
| Daily Pivot Point S1 | 7.1382 |
| Daily Pivot Point S2 | 7.1234 |
| Daily Pivot Point S3 | 7.1104 |
| Daily Pivot Point R1 | 7.1660 |
| Daily Pivot Point R2 | 7.1790 |
| Daily Pivot Point R3 | 7.1938 |
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