USD/CNH Price Analysis: Pullback from fortnight-old resistance eyes 100-SMA retest

USD/CNH takes offers to renew intraday low, snaps two-day uptrend at weekly top.
China’s Industrial Profits rose 3.5% during January-April versus 8.5% prior.
Overbought RSI, key hurdles triggered the latest retreat suggesting further weakness towards 100-SMA.
Previous resistance from early acts as an extra filter to the south, bulls need to break 6.7900 to retake control.

Anil Panchal FXStreet

USD/CNH remains on the back foot around the intraday low of 6.7515 as sellers cheer the broad US dollar weakness, by also ignoring the downbeat China data during Friday’s Asian session.

That said, China’s Industrial Profits for the January-April period dropped to 3.5% versus 8.5% prior whereas the figures for April slumped to -8.5% versus 12.2% previous gains.

Technically, multiple levels marked since May 12, near 6.7860-7900, joined overbought RSI conditions to trigger the latest AUD/USD weakness.

Also keeping the sellers hopeful is the pair’s inability to cross the previous support line from late April, around 6.7750 by the press time.

The quote’s latest weakness eyes the 100-SMA level of 6.7390. However, the previous resistance line from early May, close to 6.7100, could test the bears afterward.

Should USD/CNH prices drop below 6.7100, the 61.8% Fibonacci retracement of late April to early May upside, near 6.6575, will be in focus.

USD/CNH: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	6.7664
Today Daily Change	-0.0030
Today Daily Change %	-0.04%
Today daily open	6.7694

Trends
Daily SMA20	6.7219
Daily SMA50	6.5394
Daily SMA100	6.4437
Daily SMA200	6.4286

Levels
Previous Daily High	6.772
Previous Daily Low	6.7012
Previous Weekly High	6.8206
Previous Weekly Low	6.6726
Previous Monthly High	6.694
Previous Monthly Low	6.3512
Daily Fibonacci 38.2%	6.7449
Daily Fibonacci 61.8%	6.7283
Daily Pivot Point S1	6.7231
Daily Pivot Point S2	6.6768
Daily Pivot Point S3	6.6524
Daily Pivot Point R1	6.7938
Daily Pivot Point R2	6.8182
Daily Pivot Point R3	6.8645

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 hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.