USD/CNH defends crucial trendline support on heightened trade tensions
|- The offshore yuan (CNH) is under pressure as US Vice President on Saturday vowed no end to tariffs until China bows.
- The USD/CNH bounced off the trendline connecting the Aug. 27 and Sept. 21 lows, saving the day for the bulls.
The offshore yuan (CNH) is reporting losses at press time, courtesy of heightened US-China trade tensions.
As of writing, the USD/CNH pair is trading at 6.9279, having defended the trendline rising from the Aug. 27 low.
The US Vice President Mike Pence said on Saturday that the Trump administration will not back down from its trade dispute with China, and might even double its tariffs unless Beijing bows to the US demands.
The harshly worded speech at an Asia Pacific Economic Co-operation (APEC) summit in Papua New Guinea, has likely triggered risk aversion in the markets. This is evident from the 0.35 percent drop in the S&P 500 futures. That risk-off has likely put a haven bid under the greenback.
A bullish reversal, however, would be confirmed after the pair violates lower high pattern with a move above 6.9694 (Nov. 13 high). Meanwhile, a close below the ascending trendline would validate the bearish divergence of the 14-week relative strength index (RSI) and allow a deeper drop.
USD/CNH Technical Levels
USD/CNH
Overview:
Last Price: 6.9278
Daily change: 98 pips
Daily change: 0.142%
Daily Open: 6.918
Trends:
Daily SMA20: 6.94
Daily SMA50: 6.908
Daily SMA100: 6.853
Daily SMA200: 6.6039
Levels:
Daily High: 6.9454
Daily Low: 6.9106
Weekly High: 6.9701
Weekly Low: 6.9106
Monthly High: 6.9798
Monthly Low: 6.8674
Daily Fibonacci 38.2%: 6.9239
Daily Fibonacci 61.8%: 6.9321
Daily Pivot Point S1: 6.9039
Daily Pivot Point S2: 6.8899
Daily Pivot Point S3: 6.8691
Daily Pivot Point R1: 6.9387
Daily Pivot Point R2: 6.9595
Daily Pivot Point R3: 6.9735
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