USD/CNH Price Analysis: Bounces off two-week-old rising channel’s support

USD/CNH refreshes intraday top while snapping a two-day losing streak.
Bullish chart formation, easing bearish bias of MACD favor buyers.
Short-term horizontal area adds to the downside filters, channel’s resistance can test the bulls.

Anil Panchal FXStreet

USD/CNH takes the bids to the intraday high of 6.4768, up 0.13% on a day, during the early Tuesday. In doing so, the Chinese currency pair takes a u-turn from the support line of an ascending channel pattern established in mid-February.

In addition to the quote’s ability to keep the bullish chart pattern, receding bearish MACD also keeps the USD/CNH buyers hopeful.

That said, the early February top near 6.4880 offers immediate resistance to the quote ahead of pushing it to the stated channel’s upper line, at 6.5125 now.

During the rise, the 6.5000 threshold can offer an intermediate halt whereas highs marked during February and late January, respectively around 6.5080 and 6.5150, can add filters to the north-run.

Meanwhile, a downside break of 6.4545 will defy the bullish chart pattern and call the USD/CNH sellers to attack a horizontal area comprising multiple levels since late January, around 6.4400-4375.

If at all the USD/CNH bears dominate past-6.4375, the 6.4080 level may offer a buffer during the quote’s south-run targeting the 6.4000 psychological benchmark.

USD/CNH four-hour chart

Trend: Bullish

Additional important levels

Overview
Today last price	6.4766
Today Daily Change	0.0085
Today Daily Change %	0.13%
Today daily open	6.4681

Trends
Daily SMA20	6.4497
Daily SMA50	6.4706
Daily SMA100	6.5369
Daily SMA200	6.7426

Levels
Previous Daily High	6.4826
Previous Daily Low	6.4648
Previous Weekly High	6.5084
Previous Weekly Low	6.441
Previous Monthly High	6.5084
Previous Monthly Low	6.4008
Daily Fibonacci 38.2%	6.4716
Daily Fibonacci 61.8%	6.4759
Daily Pivot Point S1	6.4611
Daily Pivot Point S2	6.4541
Daily Pivot Point S3	6.4433
Daily Pivot Point R1	6.4789
Daily Pivot Point R2	6.4897
Daily Pivot Point R3	6.4967

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.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.