USD/CNH Price Analysis: Ignores China PMI to refresh multi-month low below 6.5000

USD/CNH drops to fresh low since late June 2018 following data.
China’s Caixin Manufacturing PMI drops to 53.00 in December.
MACD suggests further downside to channel support but RSI probes bears.

Anil Panchal FXStreet

USD/CNH drops to the lowest since June 2018 while ignoring China’s December month Caixin Manufacturing PMI. The quote currently stands on a slippery ground near 6.4695, down 0.51% intraday, during early Monday.

China’s Caixin Manufacturing PMI slipped below 54.9 forecast and expected to 53.00 but marked a consecutive eighth print suggesting expansion in manufacturing activities of the world’s second-largest economy.

Read: Chinese December 20 Caixin Manufacturing PMI 53.0 vs exp 54.7; prev 54.9

A downward sloping trend channel from early November portrays the USD/CNH traders’ bearish bias. Further, MACD is also teasing the sellers by the time of writing.

As a result, USD/CNH bears are targeting the support line of the stated channel, at 6.4528, before eyeing the June 2018 low near 6.3760.

However, oversold RSI conditions suggest corrective pullback towards regaining the 6.5000 round-figure.

Though, a confluence of 21-day SMA and channel’s upper line near 6.5200 will be a tough nut to break for USD/CNH buyers.

Overall, USD/CNH is in a bearish trajectory with momentum oscillators suggesting an intermediate pullback.

USD/CNH daily chart

Trend: Bearish

Additional important levels

Overview
Today last price	6.4681
Today Daily Change	-0.0341
Today Daily Change %	-0.52%
Today daily open	6.5022

Trends
Daily SMA20	6.5226
Daily SMA50	6.5728
Daily SMA100	6.6847
Daily SMA200	6.8737

Levels
Previous Daily High	6.5037
Previous Daily Low	6.5006
Previous Weekly High	6.5366
Previous Weekly Low	6.4887
Previous Monthly High	6.5854
Previous Monthly Low	6.4887
Daily Fibonacci 38.2%	6.5018
Daily Fibonacci 61.8%	6.5025
Daily Pivot Point S1	6.5006
Daily Pivot Point S2	6.4992
Daily Pivot Point S3	6.4976
Daily Pivot Point R1	6.5037
Daily Pivot Point R2	6.5052
Daily Pivot Point R3	6.5067

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.