#USDCNH @ 7.21505 steps back after refreshing the highest levels in two weeks., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• USD/CNH steps back after refreshing the highest levels in two weeks.
• MACD turns the most bullish in a month, suggesting further upside.
• Ascending trend line from November 15 restricts immediate declines.

The pair currently trades last at 7.21505.

The previous day high was 7.2116 while the previous day low was 7.149. The daily 38.2% Fib levels comes at 7.1877, expected to provide support. Similarly, the daily 61.8% fib level is at 7.173, expected to provide support.

USD/CNH bulls take a breather around 7.2100, after refreshing a fortnight-high around 7.2600 level, during early Monday. In doing so, the offshore Chinese Yuan (CNH) pair witnesses a pullback from a two-month-old horizontal resistance area.

However, the pair’s sustained trading beyond a two-week-old ascending trend line joins the strongest price-positive MACD signals in a month to keep the USD/CNH buyers hopeful.

That said, a clear upside break of the 7.2600-2680 hurdle becomes necessary for the USD/CNH bulls to keep the reins.

Following that, a run-up towards refreshing the all-time high marked earlier in the year around 7.3750 can’t be ruled out.

It’s worth noting that the 7.3000 psychological magnet may act as an intermediate halt during the anticipated rally.

On the contrary, a downside break of the previously mentioned support line, close to 7.1655 by the press time, could recall the USD/CNH bears.

The same could direct the quote’s weakness towards the 50% Fibonacci retracement level of the August-October upside, near 7.0440.

Even so, the 100-Day Moving Average (DMA) support near 7.0065, quickly followed by the 7.0000 round figure could challenge the pair’s further declines.

Trend: Further upside expected

Technical Levels: Supports and Resistances

USDCNH currently trading at 7.2122 at the time of writing. Pair opened at 7.1984 and is trading with a change of 0.19% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 7.1893, 50 SMA 7.1747, 100 SMA @ 7.0018 and 200 SMA @ 6.7756.

The previous day high was 7.2116 while the previous day low was 7.149. The daily 38.2% Fib levels comes at 7.1877, expected to provide support. Similarly, the daily 61.8% fib level is at 7.173, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 7.161, 7.1238, 7.0984
• Pivot resistance is noted at 7.2236, 7.249, 7.2862

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