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.

EUR/USD accelerates losses, focus is on 1.1800

EUR/USD’s selling pressure is gathering pace now, opening the door to a potential test of the key 1.1800 region sooner rather than later. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and the publication of the FOMC Minutes later in the day.

GBP/USD turns negative near 1.3540

GBP/USD reverses its initial upside momentum and is now adding to previous declines, revisiting at the same time the 1.3540 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold picks pace, flirts with $5,000

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and pushing higher towards the key $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.