USD/CNH Price Analysis: Extends bounce off weekly low towards 6.6400 on downbeat China data

USD/CNH snaps two-day downtrend, picks up bids to poke intraday high.
China’s Caixin Services PMI dropped to the lowest levels in two years.
21-SMA lures immediate upside moves, bears need validation from 6.6090.

Anil Panchal FXStreet

USD/CNH takes the bids to refresh intraday high around 6.6325, up 0.23% on a day, after China’s Caixin Services disappointed traders during early Thursday.

That said, the aforementioned private services gauge not only dropped below42.0 previous readouts but also slumped to the 25-month low while flashing a 36.2 figure for April 2022.

Read: China Caixin Services miss caps AUD advance

Softer data helps USD/CNH to extend the early Asian session rebound from one-week-old horizontal support.

Given the firmer RSI support the latest recovery moves from the short-term key support, USD/CNH braces for a 21-SMA level of 6.6583.

However, descending trend line from Tuesday, near 6.6630, will challenge the USD/CNH bulls afterward, a break of which will direct prices towards the weekly resistance line near 6.7000.

Meanwhile, pullback moves remain elusive until staying beyond the April 29 high of 6.6090.

Following that, the 6.6000 threshold may test bears before directing them to the 6.5450 level comprising lows marked on April 24.

USD/CNH: Four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	6.6304
Today Daily Change	0.0130
Today Daily Change %	0.20%
Today daily open	6.6174

Trends
Daily SMA20	6.4944
Daily SMA50	6.4102
Daily SMA100	6.3855
Daily SMA200	6.4074

Levels
Previous Daily High	6.6698
Previous Daily Low	6.6116
Previous Weekly High	6.694
Previous Weekly Low	6.5239
Previous Monthly High	6.694
Previous Monthly Low	6.3512
Daily Fibonacci 38.2%	6.6339
Daily Fibonacci 61.8%	6.6476
Daily Pivot Point S1	6.5961
Daily Pivot Point S2	6.5748
Daily Pivot Point S3	6.5379
Daily Pivot Point R1	6.6543
Daily Pivot Point R2	6.6912
Daily Pivot Point R3	6.7125

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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