USD/CNH Price Analysis: Fresh downside eyes weekly support line
|- USD/CNH drops below 61.8% Fibonacci retracement in the latest fall.
- Weekly support line holds the key to the late-April bottom.
- 200-HMA, 50% of Fibonacci retracement limits immediate upside.
USD/CNH bounces off intraday low of 7.0840 to 7.0875, but still down 0.12% on a day, amid the early Chinese session on Monday.
Read: PBOC: Will resort to “more powerful” policies to counter the coronavirus hit to growth
The pair recently slipped below 61.8% Fibonacci retracement of its April 30 to May 04 fall, which in turn drags it to the weekly support line, currently around 7.0775.
Given the MACD teasing bears, the quote’s further declines below 7.0775 can recall the April 30 low surrounding 7.0525.
On the contrary, an upside clearance of 61.8% Fibonacci retracement level of 7.0922 can trigger recoveries towards a two-day-old resistance line, at 7.0985.
Though, a confluence of 200-HMA and 50% Fibonacci retracement seems to limit the pairs’ further upside around 7.1050.
USD/CNH hourly chart
Trend: Bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.