The USDCNH continues to stay at a one-week high and remains steady, showing strength for the third day in a row. According to Nehcap’s perspective, more upward movement is anticipated.
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- USD/CNH remains sidelined at one-week high, stays firmer for the third consecutive day.
The pair currently trades last at 7.20662.
The previous day high was 7.213 while the previous day low was 7.1734. The daily 38.2% Fib levels comes at 7.1979, expected to provide support. Similarly, the daily 61.8% fib level is at 7.1886, expected to provide support.
USD/CNH bulls take a breather at the highest level in eight days, picking up bids to 7.2080 heading into Thursday’s European session. In doing so, the offshore Chinese Yuan (CNH) pair ignores the upbeat China Caixin Services PMI by tracing the firmer US Dollar ahead of the key data.
Also read: US Dollar Index: DXY traces yields to refresh multi-day top below 103.00 ahead of US ISM Services PMI
That said, China’s Caixin Services PMI jumps to 54.1 in July from 53.9 prior and 52.5 market expectations.
It’s worth noting, however, that the previous day’s upside break of a five-week-old descending trend line and the 21-DMA, respectively around 7.1970 and 7.1860, joins the impending bull cross on the MACD to keep the Yuan sellers hopeful.
However, the mid-July swing high of around 7.2370 will be a key hurdle to cross for the USD/CNH bulls to dominate further.
In that case, the yearly high marked in July around 7.2860 will be in the spotlight.
On the contrary, a daily closing below the previous resistance line and the 21-DMA, close to 7.1970 and 7.1860 in that order, will recall the USD/CNH sellers.
Even so, the USD/CNH bear’s dominance will depend upon how well they can conquer an upward-sloping support line from mid-June, close to 7.1350.
Above all, the USD/CNH pair remains on the bull’s radar unless it stays beyond an ascending trend line stretched from late March, close to 7.0760 at the latest.
Trend: Further upside expected
Technical Levels: Supports and Resistances
USDCNH currently trading at 7.2034 at the time of writing. Pair opened at 7.2024 and is trading with a change of 0.01% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 7.2034 |
| 1 | Today Daily Change | 0.0010 |
| 2 | Today Daily Change % | 0.01% |
| 3 | Today daily open | 7.2024 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 7.1852, 50 SMA 7.1743, 100 SMA @ 7.047 and 200 SMA @ 7.0032.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 7.1852 |
| 1 | Daily SMA50 | 7.1743 |
| 2 | Daily SMA100 | 7.0470 |
| 3 | Daily SMA200 | 7.0032 |
The previous day high was 7.213 while the previous day low was 7.1734. The daily 38.2% Fib levels comes at 7.1979, expected to provide support. Similarly, the daily 61.8% fib level is at 7.1886, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 7.1796, 7.1567, 7.14
- Pivot resistance is noted at 7.2192, 7.2359, 7.2588
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 7.2130 |
| Previous Daily Low | 7.1734 |
| Previous Weekly High | 7.2134 |
| Previous Weekly Low | 7.1160 |
| Previous Monthly High | 7.2744 |
| Previous Monthly Low | 7.1160 |
| Daily Fibonacci 38.2% | 7.1979 |
| Daily Fibonacci 61.8% | 7.1886 |
| Daily Pivot Point S1 | 7.1796 |
| Daily Pivot Point S2 | 7.1567 |
| Daily Pivot Point S3 | 7.1400 |
| Daily Pivot Point R1 | 7.2192 |
| Daily Pivot Point R2 | 7.2359 |
| Daily Pivot Point R3 | 7.2588 |
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