#USDCNH @ 7.12533 crosses 200-HMA for the first time in two weeks after mixed China PMI data., @nehcap view: Further upside expected (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE 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_level4)]

• USD/CNH crosses 200-HMA for the first time in two weeks after mixed China PMI data.
• NBS Manufacturing PMI improved but Non-Manufacturing PMI and Caixin Manufacturing PMI eased in September.
• Immediate bearish channel challenges upside momentum targeting the fresh record high.
• MACD, RSI conditions join the key HMA breakout to favor buyers.

The pair currently trades last at 7.12533.

The previous day high was 7.2158 while the previous day low was 7.0892. The daily 38.2% Fib levels comes at 7.1375, expected to provide resistance. Similarly, the daily 61.8% fib level is at 7.1675, expected to provide resistance.

USD/CNH picks up bids to add gains to the first daily positive in three after China’s mixed activity data for September, published early Friday. That said, the quote renews intraday high around 7.1300 by the press time.

China’s official NBS Manufacturing PMI rose to 50.1 versus 49.6 expected and 49.4 prior while the Non-Manufacturing PMI declined to 50.6 compared to 52.0 market forecasts and 52.6 prior readings. Further, China’s Caixin Manufacturing PMI dropped to 48.1 during the stated month versus 49.5 expected and prior.

In addition to the unimpressive activity numbers but a clear rebound from the 61.8% Fibonacci retracement of the pair’s September 19-28 advances and the run-up beyond the 200-HMA for the first time in 13 days also lure USD/CNH buyers.

However, a downward sloping trend channel from Wednesday restricts immediate USD/CNH recovery, with its resistance line standing near 7.1630 by the press time.

Should the quote rises past 7.1630, the odds of witnessing a rally towards the recent record high near 7.2660 can’t be ruled out.

Alternatively, pullback moves may initially aim for the 61.8% Fibonacci retracement level, also known as the golden ratio, around 7.0950.

Following that, the stated nearby channel’s support line, close to 7.0650, could challenge the USD/CNH pair’s further weakness.

Trend: Further upside expected

Technical Levels: Supports and Resistances

USDCNH currently trading at 7.1294 at the time of writing. Pair opened at 7.097 and is trading with a change of 0.46% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 7.0259, 50 SMA 6.8926, 100 SMA @ 6.8036 and 200 SMA @ 6.6057.

The previous day high was 7.2158 while the previous day low was 7.0892. The daily 38.2% Fib levels comes at 7.1375, expected to provide resistance. Similarly, the daily 61.8% fib level is at 7.1675, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 7.0522, 7.0073, 6.9255
• Pivot resistance is noted at 7.1789, 7.2607, 7.3056

[/s2If]
Join Our Telegram Group