USD/CNH technical analysis: 2-week-old trend-line, 200-bar EMA question buyers
|- USD/CNH struggles to extend bounce off 50% Fibonacci retracement.
- Successful upside beyond near-term key resistance-confluence can challenge 7.14 horizontal-line.
The USD/CNH pair’s U-turn from 50% Fibonacci retracement level struggles to clear near-term key resistance-confluence as it trades near 7.0740 during early Tuesday.
The quote needs a successful break above 7.0740/60 region comprising 200-bar exponential moving average (EMA) and a two-week-old falling trend-line in order to justify its recent recovery.
In doing so, buyers can target a horizontal-line surrounding 7.1400 that includes August-05 high and August 29/30 lows.
If at all bulls manage to dominate past-7.1400, monthly high surrounding 7.1970 and 7.2000 will be on their radar.
On the downside, pair’s declines below 50% Fibonacci retracement of July-September rise, at 7.0324, can recall sellers aiming for 7.000 round-figure.
Further, pair’s sustained south-run under 7.000 enables them to question August month low near 6.8940 ahead of revisiting late-July bottom close to 6.8680.
USD/CNH 4-hour 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.