USD/CNH Price Analysis: Inside key SMA envelope near $6.46, Fed Chair Powell eyed


  • USD/CNH remains indecisive between 100 and 200 SMAs.
  • Bearish MACD, failures to cross two-month-old falling trend line favor bears.
  • Heavy Fedspeak, Evergrande news awaited for fresh impulse.

USD/CNH fades bounce off weekly low around $6.4620 during early Friday.

In doing so, the offshore Chinese currency (CNH) pair remains trapped inside an envelope comprising 100 and 200-SMA. It’s worth noting that the bearish MACD and sustained trading below a descending resistance line from late July keep sellers hopeful.

However, markets wait for news from Evergrande and a slew of Fed speakers, including Chairman Jerome Powell, restricts the pair moves.

Given the brighter odds for the sellers, the pair’s one more attempt to refresh the monthly low of $6.4244 can’t be ruled out. However, the 100-SMA level of $6.4540 needs to be broken for that.

It’s worth noting that the USD/CNH bulls have multiple hurdles to cross, other than the 200-SMA level of $6.4665, making it harder to return.

To name a few resistances, 50% Fibonacci retracement of July-September downside, near $6.4770, follows the 200-SMA hurdle while preceding the stated resistance line figures of $6.4845. Additionally, 61.8% Fibonacci retracement level of $6.4890 and the $6.4900 act as extra filters to the north.

USD/CNH: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price 6.4622
Today Daily Change 0.0002
Today Daily Change % 0.00%
Today daily open 6.462
 
Trends
Daily SMA20 6.4557
Daily SMA50 6.47
Daily SMA100 6.4524
Daily SMA200 6.4727
 
Levels
Previous Daily High 6.4748
Previous Daily Low 6.4525
Previous Weekly High 6.4738
Previous Weekly Low 6.425
Previous Monthly High 6.5102
Previous Monthly Low 6.4473
Daily Fibonacci 38.2% 6.461
Daily Fibonacci 61.8% 6.4663
Daily Pivot Point S1 6.4515
Daily Pivot Point S2 6.4409
Daily Pivot Point S3 6.4293
Daily Pivot Point R1 6.4737
Daily Pivot Point R2 6.4853
Daily Pivot Point R3 6.4959

 

 

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