USD/CNH Price Analysis: Sellers attack 200-HMA on PBOC inaction
|- USD/CNH refreshes intraday low after PBOC kept interest rates unchanged.
- 200-HMA, two-week-old rising trend line probe short-term sellers.
- Weekly descending trend line guards immediate upside amid sluggish MACD.
USD/CNH fails to justify the People’s Bank of China’s (PBOC) status-quo while refreshing weekly low to 6.4728 during early Wednesday. The currency pair portrays a corrective pullback to 6.4765, down 0.05% intraday, by press time.
Read: The PBoC Interest Rate Decision unchanged
Despite the quote’s latest losses, USD/CNH sellers should remain cautious unless witnessing a downside break of an ascending trend line from January 05, at 6.4640 now. It’s worth mentioning that the 200-bar SMA offers immediate support near 6.4720.
In a case where USD/CNH bears dominate below the stated support line, the last Wednesday’s low near 6.4400 should return to the chart.
Meanwhile, a descending trend line from Monday, currently near 6.4870, will probe the short-term upside of the USD/CNH prices ahead of the key resistance line from November 24 near 6.5015.
Also acting as an upside barrier is the monthly top surrounding 6.5050, a break of which can recall USD/CNH buyers targeting December top near 6.5855.
USD/CNH hourly chart
Trend: Pullback expected
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.