USD/CNH Price Analysis: Edges lower to near 7.2100 followed by support at 23.6% Fibonacci

USD/CNH extends its losses followed by the support at 23.6% Fibonacci retracement level at 7.1985.
A break below the 14-day EMA could lead the pair to test the weekly low at 7.1748.
Technical indicators suggest a bullish momentum to revisit the week’s high at 7.2322.

Akhtar Faruqui FXStreet

USD/CNH extends its losses for the second successive session, trading lower near the 7.2100 psychological level during the Asian session on Friday. The People's Bank of China (PBoC) has consistently set the reference rate at levels lower than what modeled estimates suggest. Additionally, strategic moves have been made to bolster the offshore Yuan (CNH) by selling the US Dollar (USD) in the open market.

The 23.6% Fibonacci retracement level at 7.1985 acts as an immediate support followed by the 14-day Exponential Moving Average (EMA) at 7.1899. A firm break below the 14-day EMA could put downward pressure on the USD/CNH pair to navigate the support region around the 38.2% Fibonacci retracement level at 7.1772 aligned with the week’s low at 7.1748.

The technical analysis of the Moving Average Convergence Divergence (MACD) for the USD/CNH pair reveals a bullish outlook. The MACD line is situated above the centerline and displays divergence above the signal line. This configuration suggests a potential uptrend in the market. With this bullish sentiment, there is a possibility that the pair may revisit the week's high at 7.2322.

Furthermore, the 14-day Relative Strength Index (RSI), a lagging indicator, is positioned above the 50 mark. This suggests a confirmation of stronger momentum for the USD/CNH pair. With this increased momentum, there is potential for the bulls to strengthen their position, potentially surpassing the week's high and exploring levels around the psychological mark at 7.2500.

USD/CAD: Daily Chart

USD/CNH: additional technical levels

Overview
Today last price	7.2134
Today Daily Change	-0.0036
Today Daily Change %	-0.05
Today daily open	7.217

Trends
Daily SMA20	7.1684
Daily SMA50	7.1726
Daily SMA100	7.2409
Daily SMA200	7.1853

Levels
Previous Daily High	7.2242
Previous Daily Low	7.2078
Previous Weekly High	7.193
Previous Weekly Low	7.1544
Previous Monthly High	7.2
Previous Monthly Low	7.0874
Daily Fibonacci 38.2%	7.2141
Daily Fibonacci 61.8%	7.2179
Daily Pivot Point S1	7.2084
Daily Pivot Point S2	7.1998
Daily Pivot Point S3	7.192
Daily Pivot Point R1	7.2249
Daily Pivot Point R2	7.2328
Daily Pivot Point R3	7.2414

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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