#USDCNH @ 6.84669 takes offers to renew multi-day low during three-day downtrend., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USD/CNH takes offers to renew multi-day low during three-day downtrend.
• Clear break of 2.5-month-long ascending trend line direct offshore Chinese Yuan buyers towards 6.8100.
• Recovery remains elusive below 100-DMA; previous monthly high is the key upside hurdle.

The pair currently trades last at 6.84669.

The previous day high was 6.8858 while the previous day low was 6.866. The daily 38.2% Fib levels comes at 6.8736, expected to provide resistance. Similarly, the daily 61.8% fib level is at 6.8783, expected to provide resistance.

USD/CNH stands on slippery grounds as it breaks the short-term key support while refreshing the lowest levels in two weeks to around 6.8500 during early Friday.

Not only a clear break of the ascending trend line from early February but a downbeat RSI (14), not oversold, joins the quote’s sustained U-turn from the 100-DMA to also favor the offshore Chinese Yuan (CNH) buyers, which in turn weighs on the USD/CNH price.

With this, the USD/CNH pair is all set to visit a 2.5-month-old horizontal support area surrounding 6.8100.

However, the 6.8000 round figure and the easing RSI (14) line could challenge the USD/CNH bears afterward, if not then multiple levels marked during late January and early February, respectively near 6.7900 and 6.7750, could act as the last defense of the buyers.

On the flip side, the aforementioned support-turned-resistance line restricts the USD/CNH pair’s corrective bounce near 6.8570.

Following that, the 100-DMA level of around 6.8890 and the 6.8900 round figure could challenge the pair buyers.

In a case where USD/CNH remains firmer past 6.8900, the 6.9000 round figure and the previous monthly high of 6.9970 will be crucial to watch as it holds the key to the bull’s dominance.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDCNH currently trading at 6.851 at the time of writing. Pair opened at 6.872 and is trading with a change of -0.31% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 6.8766, 50 SMA 6.8825, 100 SMA @ 6.8926 and 200 SMA @ 6.9446.

The previous day high was 6.8858 while the previous day low was 6.866. The daily 38.2% Fib levels comes at 6.8736, expected to provide resistance. Similarly, the daily 61.8% fib level is at 6.8783, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 6.8634, 6.8549, 6.8437
• Pivot resistance is noted at 6.8832, 6.8944, 6.903

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