USD/CNH Price Analysis: Grinds near record high amid PBOC inaction

USD/CNH seesaws around all-time high, struggles to defend bulls of late.
PBOC left benchmark one-year LPR unchanged at 3.65%.
13-day-old resistance line guards immediate upside, bears remain absent beyond two-month-old support.
Overbought RSI, nearness to short-term key resistances suggest that bulls are running out of steam.

Anil Panchal FXStreet

After refreshing the record high of 7.2790 earlier in the day, USD/CNH remains sidelined near 7.2660 during Thursday’s Asian session. In doing so, the offshore Chinese yuan (CNH) pair takes clues from the People’s Bank of China’s (PBOC) inaction, as well as overbought RSI (14) near the short-term key resistance.

“China kept its benchmark lending rates unchanged for a second straight month on Thursday, in line with expectations, as authorities held off unleashing more monetary stimulus to avoid stark policy divergence with other major economies,” said Reuters. The news also mentioned that PBOC kept one-year and five-year loan prime rates (LPR) unchanged at 3.65% and 4.30% respectively.

Also read: China left the one-year loan prime rate unchanged at 3.65%, five-year loan prime rate unchanged at 4.30%

Technically, USD/CNH has little room to the upside as overbought RSI (14) challenges the bulls near an upward-sloping resistance line from October 03, around 7.2930 by the press time,

Following that, an ascending resistance line from May, around 7.3380 will gain the USD/CNH buyer’s attention.

On the flip side, 21-DMA and a two-month-old support line, respectively near 7.1555 and 7.1220, restrict the short-term downside of the USD/CNH pair, a break of which could convince sellers to refresh the monthly low, around 7.0130 at the latest.

USD/CNH: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	7.2678
Today Daily Change	-0.0002
Today Daily Change %	-0.00%
Today daily open	7.268

Trends
Daily SMA20	7.15
Daily SMA50	7.0041
Daily SMA100	6.864
Daily SMA200	6.6602

Levels
Previous Daily High	7.2748
Previous Daily Low	7.2112
Previous Weekly High	7.2384
Previous Weekly Low	7.1142
Previous Monthly High	7.2674
Previous Monthly Low	6.8882
Daily Fibonacci 38.2%	7.2506
Daily Fibonacci 61.8%	7.2355
Daily Pivot Point S1	7.2279
Daily Pivot Point S2	7.1878
Daily Pivot Point S3	7.1643
Daily Pivot Point R1	7.2915
Daily Pivot Point R2	7.315
Daily Pivot Point R3	7.3551

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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