#USDCNH @ 7.01750 picks up bids to refresh intraday high, crosses immediate resistance line, 50-EMA hurdle., @nehcap view: Further upside expected (Pivot Orderbook analysis)
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- USD/CNH picks up bids to refresh intraday high, crosses immediate resistance line, 50-EMA hurdle.
- PBOC cuts reverse repo rate by 10 bps to 2.15%.
- Sustained bounce off 100-EMA, one-week-old horizontal support keeps buyers hopeful.
- Sellers need validation from 61.8% Fibonacci retracement to retake control.
The pair currently trades last at 7.01750.
The previous day high was 7.0426 while the previous day low was 6.9976. The daily 38.2% Fib levels comes at 7.0148, expected to provide support. Similarly, the daily 61.8% fib level is at 7.0254, expected to provide resistance.
USD/CNH reverses the previous day’s pullback from the 26-month high while renewing the intraday top near 7.0120 during Monday’s Asian session. In doing so, the offshore Chinese yuan pair respects the People’s Bank of China’s (PBOC) rate cut to cross immediate hurdles amid a sluggish session.
That said, the Chinese central bank lowers the 14-day reverse repo rate by 10 basis points (bps) to 2.15%. “With no reverse repos maturing on Monday, China central bank injects 12 billion yuan on the day,” per Reuters.
Given the immediate break of the downward sloping resistance line from Friday, now support near the 7.0000 threshold, as well as the 50-EMA, the USD/CNH prices are likely to rush towards the recently flashed multi-day top near 7.0425.
It should, however, be noted that the tops marked during June 2020 near 7.0975 will precede the 7.1000 psychological magnet to restrict the pair’s further upside.
Meanwhile, a one-week-old horizontal area and the 100-EMA, respectively near 6.9960-50 and 6.9900, could restrict short-term declines of the USD/CNH pair.
Following that, the 61.8% Fibonacci retracement level of September 12-16 moves, near 6.9600, could challenge the bears before giving them control.
Trend: Further upside expected
Technical Levels: Supports and Resistances
USDCNH currently trading at 7.0106 at the time of writing. Pair opened at 7.002 and is trading with a change of 0.12% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 7.0106 |
| 1 | Today Daily Change | 0.0086 |
| 2 | Today Daily Change % | 0.12% |
| 3 | Today daily open | 7.002 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 6.929, 50 SMA 6.829, 100 SMA @ 6.7686 and 200 SMA @ 6.573.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 6.9290 |
| 1 | Daily SMA50 | 6.8290 |
| 2 | Daily SMA100 | 6.7686 |
| 3 | Daily SMA200 | 6.5730 |
The previous day high was 7.0426 while the previous day low was 6.9976. The daily 38.2% Fib levels comes at 7.0148, expected to provide support. Similarly, the daily 61.8% fib level is at 7.0254, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 6.9856, 6.9692, 6.9407
- Pivot resistance is noted at 7.0305, 7.059, 7.0754
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 7.0426 |
| Previous Daily Low | 6.9976 |
| Previous Weekly High | 7.0426 |
| Previous Weekly Low | 6.9108 |
| Previous Monthly High | 6.9326 |
| Previous Monthly Low | 6.7164 |
| Daily Fibonacci 38.2% | 7.0148 |
| Daily Fibonacci 61.8% | 7.0254 |
| Daily Pivot Point S1 | 6.9856 |
| Daily Pivot Point S2 | 6.9692 |
| Daily Pivot Point S3 | 6.9407 |
| Daily Pivot Point R1 | 7.0305 |
| Daily Pivot Point R2 | 7.0590 |
| Daily Pivot Point R3 | 7.0754 |
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