USD/CNH Price Analysis: Corrective bounce is stalling

USD/CNH's daily chart shows buyer fatigue near 6.83.
The pair risks revisiting the 17-month low of 6.7453.

Omkar Godbole FXStreet Contributor

USD/CNH's recovery rally from 17-month lows looks to have run out of steam.

The long upper wicks attached to the previous four daily candles indicate buyer exhaustion above 6.83.

In other words, these candles indicate the buyers lack the strength to extend the bounce from the Sept. 16 low of 6.7453 beyond 6.83.

Coupled with a potential descending triangle breakdown on the hourly chart, that would open the doors for a re-test of the recent low of 6.7453.

Alternatively, a convincing close above 6.83 would signal a continuation of the recovery rally.

Daily chart

Trend: Neutral

Technical levels

USD/CNH

Overview
Today last price	6.814
Today Daily Change	-0.0020
Today Daily Change %	-0.03
Today daily open	6.816

Trends
Daily SMA20	6.8129
Daily SMA50	6.8912
Daily SMA100	6.983
Daily SMA200	7.001

Levels
Previous Daily High	6.8302
Previous Daily Low	6.8112
Previous Weekly High	6.8462
Previous Weekly Low	6.7532
Previous Monthly High	6.9938
Previous Monthly Low	6.8436
Daily Fibonacci 38.2%	6.823
Daily Fibonacci 61.8%	6.8184
Daily Pivot Point S1	6.808
Daily Pivot Point S2	6.8
Daily Pivot Point S3	6.789
Daily Pivot Point R1	6.8272
Daily Pivot Point R2	6.8383
Daily Pivot Point R3	6.8463

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.