- USD/CNH remains pressured at three-month low, down for the sixth consecutive day.
- Clear break of multi-day-old support line, bearish MACD signals favor sellers.
- Lows marked in October, November guard immediate upside.
USD/CNH bears keep the reins during early Tuesday, printing a six-day south-run around 6.9570 by the press time. In doing so, the offshore Chinese Yuan (CNH) pair justifies the previous week’s downside break of an ascending trend line from April.
Given bearish MACD signals favoring the USD/CNH pair’s trend line break, the sellers are well-set to challenge the monthly low marked the previous day around 6.9300.
Following that, September 10 swing low near 6.9100 may act as an intermediate halt during the likely fall towards a six-month-old ascending support line, close to 6.8940 at the latest.
In a case where USD/CNH remains bearish past 6.8940, the 50% Fibonacci retracement level of the pair’s run-up from late March to October, around 6.8600, will precede the 200-DMA support near 6.8015 to challenge the further downside.
Alternatively, recovery remains elusive unless the quote stays below the support-turned-resistance line stretched from April, near 7.0700 by the press time.
That said, an area comprising lows marked during November and October, around 7.0130-200, restricts the pair’s immediate upside.
It’s worth noting that multiple hurdles surrounding 7.2600-2700 could question the USD/CNH bulls before giving them control.
USD/CNH: Daily chart
Trend: Further downside expected
Additional important levels
|Today last price||6.9558|
|Today Daily Change||-0.0184|
|Today Daily Change %||-0.26%|
|Today daily open||6.9742|
|Previous Daily High||7.0198|
|Previous Daily Low||6.9298|
|Previous Weekly High||7.2598|
|Previous Weekly Low||7.005|
|Previous Monthly High||7.3568|
|Previous Monthly Low||7.0194|
|Daily Fibonacci 38.2%||6.9642|
|Daily Fibonacci 61.8%||6.9855|
|Daily Pivot Point S1||6.9294|
|Daily Pivot Point S2||6.8846|
|Daily Pivot Point S3||6.8394|
|Daily Pivot Point R1||7.0194|
|Daily Pivot Point R2||7.0646|
|Daily Pivot Point R3||7.1094|
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