USD/CNH Price Analysis: Bounces off short-term support-line on China PMI
|- USD/CNH pulls back from the eight-day-old support trend line.
- China’s April month official Manufacturing PMI slipped below forecasts.
- Two-day-old resistance line in focus.
- 61.8% Fibonacci retracement adds to the support.
With weaker than anticipated China Manufacturing PMI, USD/CNH bounces off immediate support line to currently around 7.0731 during the early Thursday.
China’s Manufacturing PMI slipped below 51.00 market consensus to 50.80, versus 52.00 prior.
Read: China official PMI for April Manufacturing 50.8 (expected 51.0)
Should the pair manage to sustained bounce, a two-day-old falling trend line near 7.0830 will be challenging the bulls ahead of the weekly top near 7.0985.
On the contrary, a downside break of the said support line, at 7.0720, will have to slip below 61.8% Fibonacci retracement of April 14-21 upside, around 7.0680, to revisit sub-7.0600 area.
USD/CNH hourly chart
Trend: Pullback expected
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