USD/CNH jumps above 200-day MA on weak China data, 14-day RSI diverges

USD/CNH has moved back above the 200-day MA, possibly on the back of dismal China data and technical conditions.
With the positive move seen today, the 14-day RSI has diverged in favor of the bulls.

Omkar Godbole FXStreet Contributor

The USD/CNH pair is currently trading at 6.74, representing a 0.5 percent rise on the day.

The pair picked up a strong bid at 6.7043 earlier today and crossed the 200-day moving average (MA) of 6.7328 after China's January Caixin PMI printed at 48.3 - the lowest level in nearly three years - stoking fears of a deeper slowdown in the world's second-largest economy.

A strong corrective bounce was expected, as the 14-hour relative strength index (RSI) had diverged in favor of the bulls 24-hours ago. That indicator is now biased bullish above 50.00.

More importantly, the 14-day RSI is now showing a bullish divergence. So, it could be argued that the sell-off from the highs above 6.95 has likely found a short-term bottom at 6.7013.

Technical Levels

USD/CNH

Overview:
    Today Last Price: 6.7386
    Today Daily change: 0.0293 pips
    Today Daily change %: 0.44%
    Today Daily Open: 6.7093
Trends:
    Daily SMA20: 6.7844
    Daily SMA50: 6.8525
    Daily SMA100: 6.8832
    Daily SMA200: 6.7527
Levels:
    Previous Daily High: 6.7592
    Previous Daily Low: 6.7026
    Previous Weekly High: 6.8189
    Previous Weekly Low: 6.7525
    Previous Monthly High: 6.8947
    Previous Monthly Low: 6.702
    Daily Fibonacci 38.2%: 6.7242
    Daily Fibonacci 61.8%: 6.7376
    Daily Pivot Point S1: 6.6882
    Daily Pivot Point S2: 6.6671
    Daily Pivot Point S3: 6.6316
    Daily Pivot Point R1: 6.7448
    Daily Pivot Point R2: 6.7803
    Daily Pivot Point R3: 6.8014

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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