USD/CNH Price Analysis: 200-SMA tests Yuan sellers near 7.2000, focus on US PMI

USD/CNH bulls prod 200-SMA during two-day winning streak, clings to mild gains of late.
Looming bull cross on MACD, sustained trading past short-term support line favors Chinese Yuan sellers.
Three-week-old descending resistance line adds to the upside filters.

Anil Panchal FXStreet

USD/CNH struggles to defend buyers around 7.1980 heading into Monday’s European session, jostling with the 200-SMA of late. In doing so, the offshore Chinese Yuan (CNH) justifies the looming bull cross on the MACD indicator by staying beyond a fortnight-old rising support line.

It’s worth noting that the 38.2% Fibonacci retracement of June 02-30 upside, near 7.2020, will act as an extra upside filter ahead of directing the USD/CNH buyers toward the key resistance line stretched from June 30, close to 7.2270.

In a case where the Chinese Yuan remains weak past 7.2270, the odds of witnessing its slump toward the yearly bottom marked in June surrounding 7.2860 can’t be ruled out.

On the other hand, a convergence of the 50% Fibonacci retracement and an upward-sloping support line from July 14 restricts the immediate downside of the USD/CNH pair near 7.1760.

Following that, the 61.8% Fibonacci retracement, also known as the golden Fibonacci ratio, can challenge the offshore Yuan price near 7.1500.

Should the USD/CNH bears keep the reins past 7.1500, a five-week-old rising support line close to 7.1380 will act as the last defense of the buyers.

Overall, the USD/CNH remains on the bull’s radar even if the 200-SMA challenges the pair’s immediate upside.

USD/CNH: Four-hour chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	7.1986
Today Daily Change	0.0112
Today Daily Change %	0.16%
Today daily open	7.1874

Trends
Daily SMA20	7.2178
Daily SMA50	7.1521
Daily SMA100	7.0282
Daily SMA200	7.0066

Levels
Previous Daily High	7.1922
Previous Daily Low	7.164
Previous Weekly High	7.2368
Previous Weekly Low	7.1484
Previous Monthly High	7.2856
Previous Monthly Low	7.0668
Daily Fibonacci 38.2%	7.1815
Daily Fibonacci 61.8%	7.1748
Daily Pivot Point S1	7.1702
Daily Pivot Point S2	7.153
Daily Pivot Point S3	7.142
Daily Pivot Point R1	7.1984
Daily Pivot Point R2	7.2094
Daily Pivot Point R3	7.2266

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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