USD/CNH Price Analysis: Extends downside break of 100-DMA towards monthly low

USD/CNH prints three-day downtrend, bears attack weekly bottom.
Descending RSI line, not oversold, joins SMA breakdown to back the sellers.
Convergence of six-week-old support line, 61.8% Fibonacci retracement becomes a tough nut to crack for bears.

Anil Panchal FXStreet

USD/CNH takes offers around 6.4400, down 0.17% intraday during the three-day fall ahead of Friday’s European session. In doing so, the offshore Chinese currency (CNH) pair stretches the latest failures to stay past 100-DMA.

Given the descending RSI line joining the weaker prices despite being not oversold, USD/CNH is likely to remain pressured towards the monthly low, also the lowest since June 17, around 6.4245.

However, a clear downside break of 50% Fibonacci retracement of the May-July upside, close to 6.4400, becomes necessary to strengthen the bearish impulse.

Should the quote remains weak past 6.4245, a confluence of a six-week-old falling trend line and 61.8% Fibonacci retracement near 6.4200 will be the key to watch.

Meanwhile, recovery moves need to cross the 100-DMA level of 6.4540 to recall the short-term buyers and direct them to the monthly peak of 6.4650.

Following that, 23.6% Fibonacci retracement level and a multi-day-old falling trend line, respectively around 6.4870 and 6.4955, will be the key figures to watch before confirming any further upside.

USD/CNH: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	6.4406
Today Daily Change	-0.0105
Today Daily Change %	-0.16%
Today daily open	6.4511

Trends
Daily SMA20	6.4688
Daily SMA50	6.4732
Daily SMA100	6.4543
Daily SMA200	6.476

Levels
Previous Daily High	6.4624
Previous Daily Low	6.4464
Previous Weekly High	6.472
Previous Weekly Low	6.4244
Previous Monthly High	6.5102
Previous Monthly Low	6.4473
Daily Fibonacci 38.2%	6.4525
Daily Fibonacci 61.8%	6.4563
Daily Pivot Point S1	6.4442
Daily Pivot Point S2	6.4374
Daily Pivot Point S3	6.4283
Daily Pivot Point R1	6.4601
Daily Pivot Point R2	6.4692
Daily Pivot Point R3	6.476

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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