USD/CNH Price Analysis: Bears aren’t impressed by upbeat China CPI/PPI

USD/CNH ignores better than forecast inflation data from China.
10-day SMA, six-week-old resistance line questions immediate upside.
Sellers may remain cautious unless witnessing a break of 6.9300.

Anil Panchal FXStreet

USD/CNH takes rounds to 6.9725 amid Monday’s initial trading. In doing so, the pair struggles to justify upbeat inflation data from China. The reason could be traced from the fresh Sino-American tension after Trump administration levied fresh sanctions on Chinese apps and Hong Kong Leader.

Read: Chinese CPI higher than expected, 2.7% vs 2.6%

Technically, the pair aims for a 10-day SMA level of 6.9780 as nearby resistance before targeting a falling trend line from June 29, currently around 6.9968.

Although weak RSI conditions defy calls of any further moves past-6.9968, bulls’ attempt will have an additional hurdle in the form of the 7.000 threshold to justify their strength.

On the contrary, 6.9530 and the monthly bottom around 6.9320 may entertain short-term traders during the pair’s fresh downside.

If bears manage to firm the grip below 6.9320, March month’s low near 6.9050 could well return to the charts.

USD/CNH daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	6.9674
Today Daily Change	0.0006
Today Daily Change %	0.01%
Today daily open	6.9668

Trends
Daily SMA20	6.9899
Daily SMA50	7.0367
Daily SMA100	7.0705
Daily SMA200	7.0307

Levels
Previous Daily High	6.9764
Previous Daily Low	6.9432
Previous Weekly High	6.9938
Previous Weekly Low	6.9322
Previous Monthly High	7.0764
Previous Monthly Low	6.9642
Daily Fibonacci 38.2%	6.9638
Daily Fibonacci 61.8%	6.9559
Daily Pivot Point S1	6.9479
Daily Pivot Point S2	6.929
Daily Pivot Point S3	6.9147
Daily Pivot Point R1	6.981
Daily Pivot Point R2	6.9954
Daily Pivot Point R3	7.0142

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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