- USD/CNH extends downside break of one-week-old support line, now resistance, after China’s August month trade data.
- Beijing reported better than forecast trade surplus amid strong run-up in exports.
- The monthly low holds the key to pair’s fall towards 6.8000.
USD/CNH remains on the back foot while taking rounds to 6.8300, intraday low 6.8278, during the early Monday. The quote slipped below an ascending trend line from September 01 after China’s August month trade numbers flashed upbeat results.
Read: China’s Aug Trade Balance (CNY): Surplus beats with CNY416.59 billion as exports jump
Other than the trend line breakdown, bearish MACD also favors the sellers. As a result, Wednesday’s low of 6.8225 and the monthly bottom close to 6.8130 are on the bears’ radar as nearby supports.
However, the pair’s weakness past-6.8130 will be challenged by 6.8000 round-figures.
Meanwhile, any pullback beyond the support-turned-into-resistance line, at 6.8372 now, will aim for 6.8500 level.
Though buyers will be cautious unless the quote breaks above a confluence of 200-HMA and 50% Fibonacci retracement of the pair’s August 27 to September 07 downside, near 6.8540.
USD/CNH hourly chart
Trend: Bearish
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