• USD/CNH struggles to defend the recovery moves, retreats from intraday high.
  • Steady RSI suggests further grinding towards the north.
  • 12-day-old ascending trend line, 50-SMA adds to the downside filters.
  • Bullish bias remains intact beyond 7.1000, buyers aim for a fresh all-time high.

USD/CNH reverses the previous day’s pullback from the record high during early Thursday morning in Europe, despite recent inaction around 7.1880.

In doing so, the offshore Chinese yuan (CNH) pair bounces off a horizontal area comprising multiple lows marked since Monday amid a steady RSI (14). However, bearish MACD signals and the buyer’s inability to keep the reins beyond the 7.2000 psychological magnet challenge the pair’s upside momentum.

It should be noted, however, that the pair’s pullback moves below the aforementioned immediate support near 7.1460-50 are likely to be challenged by an upward sloping support line from September 13, close to 7.1280 by the press time.

Also acting as a downside filter is the 50-SMA level surrounding 7.1125.

Even if the quote drops below 7.1125, the September 22 swing high near 7.1060 and the 7.1000 psychological magnet could act as the last defenses for the USD/CNH buyers.

Alternatively, recovery moves need to stay beyond the 1.2000 mark to convince buyers to aim for the multiple hurdles near 1.2500.

Following that, the recently flashed record high near 7.2600 and the 7.3000 psychological magnet will be in focus.

USD/CNH: Four-hour chart

Trend: Bullish

Additional important levels

Overview
Today last price 7.1886
Today Daily Change 0.0272
Today Daily Change % 0.38%
Today daily open 7.1614
 
Trends
Daily SMA20 7.0168
Daily SMA50 6.886
Daily SMA100 6.8009
Daily SMA200 6.602
 
Levels
Previous Daily High 7.2674
Previous Daily Low 7.1444
Previous Weekly High 7.1472
Previous Weekly Low 6.9904
Previous Monthly High 6.9326
Previous Monthly Low 6.7164
Daily Fibonacci 38.2% 7.1914
Daily Fibonacci 61.8% 7.2205
Daily Pivot Point S1 7.1148
Daily Pivot Point S2 7.0681
Daily Pivot Point S3 6.9918
Daily Pivot Point R1 7.2378
Daily Pivot Point R2 7.3141
Daily Pivot Point R3 7.3608

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD aims to build a cushion above 1.0450, US data trigger Fed’s rate peak chaos

EUR/USD aims to build a cushion above 1.0450, US data trigger Fed’s rate peak chaos

EUR/USD is displaying topsy-turvy moves after dropping to near 1.0460 in the early European session. The major currency pair is oscillating in a range of 1.0456-1.0476 after an intense sell-off in the late New York session.

EUR/USD News

GBP/USD attempts a recovery around 1.2120 as US Dollar turns volatile

GBP/USD attempts a recovery around 1.2120 as US Dollar turns volatile

GBP/USD is aiming to build a cushion around 1.2120 as the US Dollar is displaying chaotic moves. Phenomenal strength in the United States economy is not favorable for Fed’s current monetary policy. UK’s food supply crisis is expected to accelerate already higher food inflation further.

GBPUSD News

Gold: For how long can it defend 50-Simple Moving Average on 4H? Premium

Gold: For how long can it defend 50-Simple Moving Average on 4H?

Gold price is trying hard to stay on the bid so far in this Wednesday’s trading after witnessing a minor bounce on Tuesday. The United States Dollar (USD) is extending its recovery rally, taking the lead from the rebound in the US Treasury bond yields.

Gold News

Bitcoin price needs to pullback before BTC explodes to $20,000

Bitcoin price needs to pullback before BTC explodes to $20,000

Bitcoin price shows a clear start of a corrective wave in its journey to retest a critical hurdle. This pullback is necessary as it allows buyers to recuperate and kick-start a new leg-up. Bitcoin price has rallied 9% in the last six days and has set up a local top at $17,430.

Read more

FX Year Ahead 2023: Recessions and trend reversals

FX Year Ahead 2023: Recessions and trend reversals

The US dollar steamrolled every other major currency this year, capitalizing on a perfect storm of widening interest rate differentials, safe-haven flows, and an absence of attractive alternatives. This ferocious rally could extend into next year.

Read more

Forex MAJORS

Cryptocurrencies

Signatures