USD/CNH Price Analysis: Refreshes 14-month low after China Caixin PMI
|- USD/CNH drops the lowest since July 2019 after China’s Caixin Manufacturing PMI beat forecasts with a positive margin.
- Sustained trading below 61.8% Fibonacci retracement, bearish MACD and CNH-positive data favor sellers.
- 200-week SMA can offer immediate rest to the pair before filling the early-May 2019 gap.
USD/CNH bears are unstoppable near the multi-month low of 6.8316 during the early Tuesday. The quote has been declining since the last six weeks while the latest weakness could be traced from China’s Caixin Manufacturing PMI for August.
China’s August month manufacturing activity data surged past-52.6 expected and 52.8 prior to 53.1. The figures joined the previous day’s official numbers that also rose above downbeat forecasts.
Technically, the pair’s sustained trading below 61.8% Fibonacci retracement level of March 2019 to May 2020 upside joins bearish MACD to suggest the quote’s additional weakness.
In doing so, the 200-week SMA level near 6.8125 becomes the sellers’ first choice ahead of the area between 6.7682 and 6.7178.
Alternatively, any recovery moves need to cross the previous day’s low near 6.8435 before diverting the upside moves to 61.8% Fibonacci retracement level of 6.8725.
USD/CNH weekly 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.