USD/CNH Price Analysis: Rebounds from 11-week low but bulls remain unconvinced
- USD/CNH picks up bids to refresh intraday high, snaps three-day downtrend.
- 100-DMA, two-week-old resistance line guard recovery moves.
- Key Fibonacci retracement levels are on the bear’s radar.
USD/CNH takes the bids to renew intraday high with 6.4551, up 0.10% on a day, after China’s Caixin Services PMI and Composite PMI disappointed traders during early Friday.
That said, China Caixin Services PMI dropped to 46.7 versus 52.6 expected and 54.9 prior in August. This dragged the Caixin Composite PMI to 47.2 versus 53.1 prior. It’s worth observing that China data dropped to the lowest since published in May.
It should be noted, however, that 100-DMA and a descending resistance line from August 20, respectively around 6.4560 and 6.4620, become tough nuts to crack for the USD/CNH buyer’s entry.
Even as the pair crosses the 6.4620 hurdle, the early August lows near 6.4960 and the 6.5000 round figure will challenge the upside moves.
On the contrary, sellers will wait for a fresh multi-day low, below the latest 6.4468, to take new entries.
Following that, 50% and 61.8% Fibonacci retracement level of May–July upside, respectively around 6.4410 and 6.4200, will entertain the USD/CNH bears.
Overall, USD/CNH remains on the bear’s radar unless crossing the 6.5000 threshold.
USD/CNH: Daily chart
Trend: Bearish
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.
