• 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

 

 

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