USD/CNH Price Analysis: Clings to 50-day SMA following the latest pullbacks

USD/CNH nears one-week low after taking a U-turn from 100-day SMA.
21-day SMA could please sellers during further downside.

Anil Panchal FXStreet

USD/CNH stays modestly changed to 6.9785 as Chinese markets open for Thursday’s trading session. The pair recently reversed from the key resistance confluence including 100-day SMA and 50% Fibonacci retracement of its fall from September 2019 to January 2020. However, 50-day SMA seems to limit the pair’s immediate declines.

As a result, the chances of the pair’s bounce to 7.000 round-figure becomes too high. Though, its further advances seem difficult unless clearing the 7.0215/20 resistance confluence.

If at all coronavirus fears manage to propel the quote beyond 7.0220 on a daily closing basis, 61.8% Fibonacci retracement level of 7.0630 and a descending trend line from September 2019, currently at 7.0870, will be in focus.

On the downside, pair’s daily closing below 50-day SMA level of 6.9730 can drag it further towards 6.9355 comprising 21-day SMA.

During the quote’s additional weakness past-6.9355, mid-January top around 6.9060 and 6.9000 will act as buffers to the yearly bottom near 6.8460/55.

USD/CNH daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	6.9793
Today Daily Change	0.0019
Today Daily Change %	0.03%
Today daily open	6.9774

Trends
Daily SMA20	6.9336
Daily SMA50	6.9735
Daily SMA100	7.0213
Daily SMA200	6.9914

Levels
Previous Daily High	7.0104
Previous Daily Low	6.9633
Previous Weekly High	7.0071
Previous Weekly Low	6.931
Previous Monthly High	7.0071
Previous Monthly Low	6.8457
Daily Fibonacci 38.2%	6.9813
Daily Fibonacci 61.8%	6.9924
Daily Pivot Point S1	6.957
Daily Pivot Point S2	6.9366
Daily Pivot Point S3	6.9099
Daily Pivot Point R1	7.0041
Daily Pivot Point R2	7.0308
Daily Pivot Point R3	7.0512

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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