USD/CNY technical analysis: 21-DMA regains buyer’s attention amid latest recovery
|- 61.8% Fibonacci retracement, 200-day SMA, limits the USD/CNY pair’s immediate downside.
- Buyers aim for 21-day SMA on the back of the latest recovery.
- Upward sloping RSI add strength into the ascending momentum.
While 200-day simple moving average (SMA) triggered the USD/CNY pair’s U-turn, buyers now aim for 21-day SMA level as the quote clocks around 6.8813 during early Tuesday.
Ahead of the 6.9044 SMA figure, early-month lows around 6.8980/90 can entertain buyers.
If prices remain strong beyond 6.9044, an eight-month-old descending trend-line at 6.9294 and December 2018 top close to 6.9605 could be on the bull’s radar.
Meanwhile, 618% Fibonacci retracement of October 2018 to March 2019 decline, at 6.8605, offers immediate support to the pair before highlighting 200-day SMA level of 6.8311 as the rest-point.
In a case where the quote slips beneath the longer-term MA, 100-day SMA level of 6.7835 is likely to please sellers.
It should also be noted that 14-day relative strength index (RSI) is on the upward trajectory from the near oversold region, which in turn flashes brighter chances of the pair’s up-moves.
USD/CNY daily chart
Trend: Bullish
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.