USD/CNH Price Analysis: Bounces off short-term support-line on China PMI

USD/CNH pulls back from the eight-day-old support trend line.
China’s April month official Manufacturing PMI slipped below forecasts.
Two-day-old resistance line in focus.
61.8% Fibonacci retracement adds to the support.

Anil Panchal FXStreet

With weaker than anticipated China Manufacturing PMI, USD/CNH bounces off immediate support line to currently around 7.0731 during the early Thursday.

China’s Manufacturing PMI slipped below 51.00 market consensus to 50.80, versus 52.00 prior.

Read: China official PMI for April Manufacturing 50.8 (expected 51.0)

Should the pair manage to sustained bounce, a two-day-old falling trend line near 7.0830 will be challenging the bulls ahead of the weekly top near 7.0985.

On the contrary, a downside break of the said support line, at 7.0720, will have to slip below 61.8% Fibonacci retracement of April 14-21 upside, around 7.0680, to revisit sub-7.0600 area.

USD/CNH hourly chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	7.0748
Today Daily Change	0.0014
Today Daily Change %	0.02%
Today daily open	7.0734

Trends
Daily SMA20	7.0809
Daily SMA50	7.0531
Daily SMA100	7.0085
Daily SMA200	7.0371

Levels
Previous Daily High	7.0892
Previous Daily Low	7.071
Previous Weekly High	7.1094
Previous Weekly Low	7.0742
Previous Monthly High	7.1654
Previous Monthly Low	6.9048
Daily Fibonacci 38.2%	7.078
Daily Fibonacci 61.8%	7.0823
Daily Pivot Point S1	7.0665
Daily Pivot Point S2	7.0597
Daily Pivot Point S3	7.0483
Daily Pivot Point R1	7.0847
Daily Pivot Point R2	7.0961
Daily Pivot Point R3	7.1029

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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