USD/CNH Technical Analysis: Pierces weekly resistance trendline after China data
|- USD/CNH rises after China’s downbeat Caixin Services PMI.
- A sustained break will escalate recovery to 200-HMA.
- Lows marked on Thursday/Friday seem to limit immediate declines.
USD/CNH breaks the immediate falling trend line while taking the bids to 6.9720 during early Monday.
The pair recently got a boost after China’s December month Caixin Services PMI slipped below 53.5 prior reading to 52.5.
With this, prices are now heading towards the 200-Hour Simple Moving Average (HMA) level of 6.9810. However, 6.9900/05 area comprising multiple lows marked around Christmas 2019 could challenge buyers afterward.
If at all the Bulls dominate past-6.9905, 7.000 mark will become their favorite.
On the contrary, 6.9565/6 horizontal region can restrict immediate declines ahead of the monthly low surrounding 6.9425.
USD/CNH hourly chart
Trend: Bullish
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