USD/CNH Price Analysis: Bears catch a breather around two-month-old support line

USD/CNH aims to recover from five-month low while bouncing off 6.9321.
Oversold RSI conditions suggest further pullback but 61.8% Fibonacci retracement guards immediate upside.
March month’s low can please sellers below the near-term key trend line.

Anil Panchal FXStreet

USD/CNH pulls back from multi-week low to 6.9458 amid the initial Chinese session on Thursday. The pair slumped to the lowest since March 09 the previous day. However, oversold RSI seems to have triggered the latest U-turn.

As a result, short-term buyers may target 61.8% Fibonacci retracement of January-May upside, at 6.9800 during the further upside. Though, July 22 low near 6.9640 could offer an intermediate halt during the rise.

In a case where the bulls dominate past-6.9800, 50% Fibonacci retracement level of 7.021 and 200-day SMA around 7.0300 could return to the charts.

Alternatively, a downward sloping trend line from June 10, at 6.9240 now, can stop the bears before pleasing them with the March low of 6.9048.

It should, however, be noted that the quote’s sustained downside past-6.9048 will make it vulnerable to revisit the yearly bottom close to 6.8455.

USD/CNH daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	6.9468
Today Daily Change	26 pips
Today Daily Change %	0.04%
Today daily open	6.9442

Trends
Daily SMA20	6.9948
Daily SMA50	7.0446
Daily SMA100	7.0742
Daily SMA200	7.0316

Levels
Previous Daily High	6.9768
Previous Daily Low	6.9322
Previous Weekly High	7.0196
Previous Weekly Low	6.975
Previous Monthly High	7.0764
Previous Monthly Low	6.9642
Daily Fibonacci 38.2%	6.9492
Daily Fibonacci 61.8%	6.9598
Daily Pivot Point S1	6.9253
Daily Pivot Point S2	6.9064
Daily Pivot Point S3	6.8806
Daily Pivot Point R1	6.97
Daily Pivot Point R2	6.9958
Daily Pivot Point R3	7.0147

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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