USD/CNH drops below 200-HMA after Trump comments

The US President Trump's comments on Huawei case and trade tensions with China are likely lifting CNH and other risky assets.
The USD/CNH pair is currently trading well below the 200-hour MA (HMA).

Omkar Godbole FXStreet Contributor

Having breached the 200-HMA earlier today, the USD/CNH pair (offshore yuan exchange rate) is now trading at a session low of 6.8840 - down 0.30 percent on the day.

The Chinese yuan is being pushed higher at press time likely in response to Trump's optimistic comments on US-China trade relations and Huawei CFO arrest.

The US President Trump, while speaking to Reuters, said that he would intervene in the Huawei case if it would help achieve a trade deal with China and boost national security. He added further that trade negotiations are taking place and expressed readiness to meet China's Xi Jinping if required. He also criticized Fed's plans to raise rates next week.

Looking forward, the risky assets may continue to cheer Trump's comments. As a result, the USD/CNH pair may slide further toward 6.8668 (Oct. 11 low).

USD/CNH Technical levels

USD/CNH

Overview:
    Today Last Price: 6.8846
    Today Daily change: -1.8e+2 pips
    Today Daily change %: -0.259%
    Today Daily Open: 6.9025
Trends:
    Previous Daily SMA20: 6.9173
    Previous Daily SMA50: 6.9247
    Previous Daily SMA100: 6.8878
    Previous Daily SMA200: 6.6541
Levels:
    Previous Daily High: 6.9228
    Previous Daily Low: 6.8932
    Previous Weekly High: 6.9509
    Previous Weekly Low: 6.826
    Previous Monthly High: 6.9808
    Previous Monthly Low: 6.8525
    Previous Daily Fibonacci 38.2%: 6.9045
    Previous Daily Fibonacci 61.8%: 6.9115
    Previous Daily Pivot Point S1: 6.8895
    Previous Daily Pivot Point S2: 6.8765
    Previous Daily Pivot Point S3: 6.8599
    Previous Daily Pivot Point R1: 6.9192
    Previous Daily Pivot Point R2: 6.9358
    Previous Daily Pivot Point R3: 6.9488

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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