USD/CNH Price Analysis: Breaks ascending support line January 2014

USD/CNH drops for the second consecutive month, on a slippery ground of late.
Bearish MACD, one-year-old falling trend line favor sellers.
February’s low guards immediate upside before the support-turned-resistance line.

Anil Panchal FXStreet

USD/CNH bears cheer a clear downside break of the key support line around a three-year low, down 0.48% near 6.3825 ahead of Wednesday’s European session.

Not only the trend line breakdown but bearish MACD and the pair’s sustained trading below 61.8% Fibonacci retracement of 2014-2019 upside, as well as sustained follow of the downward sloping trend line from May 2020, also favor USD/CNH traders.

However, the October 2015 bottom surrounding 6.3150 and the 6.3000 psychological magnet can test the sellers ahead of directing them to 2018 low close to 6.2360.

Meanwhile, corrective pullback needs to cross February’s low of 6.4008 before battling with the previous support line near 6.4020.

Also acting as the crucial hurdle to the north are the 61.8% Fibonacci retracement level and the yearly falling resistance line, respectively around 6.4670 and 6.5380.

Overall, the USD/CNH south-run is just in its infancy but intermediate bounce can’t be ruled out.

USD/CNH monthly chart

Trend: Bearish

Additiojnal important levels

Overview
Today last price	6.381
Today Daily Change	-0.0316
Today Daily Change %	-0.49%
Today daily open	6.4126

Trends
Daily SMA20	6.4466
Daily SMA50	6.4964
Daily SMA100	6.4828
Daily SMA200	6.579

Levels
Previous Daily High	6.4152
Previous Daily Low	6.392
Previous Weekly High	6.4498
Previous Weekly Low	6.418
Previous Monthly High	6.5876
Previous Monthly Low	6.4614
Daily Fibonacci 38.2%	6.4063
Daily Fibonacci 61.8%	6.4009
Daily Pivot Point S1	6.3981
Daily Pivot Point S2	6.3835
Daily Pivot Point S3	6.375
Daily Pivot Point R1	6.4212
Daily Pivot Point R2	6.4297
Daily Pivot Point R3	6.4443

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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