USD/CNH Price Analysis: Further downside towards sub-6.9000 zone appears compelling


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  • 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

Overview
Today last price 6.9558
Today Daily Change -0.0184
Today Daily Change % -0.26%
Today daily open 6.9742
 
Trends
Daily SMA20 7.1262
Daily SMA50 7.1741
Daily SMA100 7.0219
Daily SMA200 6.7985
 
Levels
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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