USD/CNH Price Analysis: Bears attack 7.0650 after China PMI, Hong Kong updates


  • USD/CNH drops to four-day low after China’s official PMIs flashed upbeat data.
  • China’s passage of the Hong Kong National Security Law failed to defy the Yuan bulls.
  • Bearish MACD suggests further weakness inside a three-week-old symmetrical triangle formation.

USD/CNH declines to 7.0652, down 0.17% on a day, amid the initial hours of China open on Tuesday. The pair recently weakened after China’s official PMIs rose well beyond the downbeat forecasts and prior. In doing so, the quote pays a little heed to the expected geopolitical tussle between Beijing and Washington following the passage of the Hong Kong National Security Law by the Chinese parliament.

Technically, the pair extends pullback moves from the upper line of a short-term symmetrical triangle amid bearish MACD signals. This suggests an additional downside of the quote towards the formation’s support of 7.0500.

However, any further weakness by the pair below 7.0500 might not refrain from challenging the monthly bottom near 7.0400. In doing so, June 24 low near 7.0455 might offer an intermediate halt.

Alternatively, the pair’s break of the said triangle’s resistance line, at 7.0870 now, could propel the buyers to aim for a 200-bar SMA level of 7.1030. Though, the early-month top and late-May bottoms might restrict extended rise around 7.1340/50.

USD/CNH four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price 7.0652
Today Daily Change -0.0118
Today Daily Change % -0.17%
Today daily open 7.077
 
Trends
Daily SMA20 7.0796
Daily SMA50 7.1024
Daily SMA100 7.0707
Daily SMA200 7.0442
 
Levels
Previous Daily High 7.088
Previous Daily Low 7.0688
Previous Weekly High 7.0898
Previous Weekly Low 7.0454
Previous Monthly High 7.1964
Previous Monthly Low 7.0774
Daily Fibonacci 38.2% 7.0762
Daily Fibonacci 61.8% 7.0807
Daily Pivot Point S1 7.0679
Daily Pivot Point S2 7.0588
Daily Pivot Point S3 7.0487
Daily Pivot Point R1 7.0871
Daily Pivot Point R2 7.0972
Daily Pivot Point R3 7.1063

 

 

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