USD/CNH Price Analysis: Recovery remains elusive below 7.0265-70 resistance confluence

USD/CNH picks up bids to extend early week rebound from the key Fibonacci retracement level.
Convergence of 100-DMA, previous support line from October challenges buyers.
MACD, RSI conditions suggest further hardships for bulls.

Anil Panchal FXStreet

USD/CNH prints a two-day uptrend around 6.9870 while extending the week-start rebound from the lowest levels in three months.

That said, the offshore Chinese Yuan (CNH) pair prints mild gains while defending the bounce off the 61.8% Fibonacci retracement level of the August-October upside.

Although the recovery moves from the key Fibonacci retracement level, also known as the golden ratio, teases the USD/CNH bulls, the downbeat RSI (14) and bearish MACD signals challenge the quote’s further upside.

Also raising doubts on the USD/CNH run-up is the joint of the 100-DMA and the support-turned-resistance line from October, near 7.0265-70.

It’s worth noting that the pair’s advances past 7.0270 need validation from the 50% Fibonacci retracement level surrounding 7.0465 before giving control to the buyers.

In that case, a gradual run-up towards the late October swing low near 7.1660 can’t be ruled out.

Alternatively, a daily closing below the 61.8% Fibonacci retracement level of 6.9688 could quickly drag the USD/CNH prices to the latest trough surrounding 6.9300.

Following that, the lows marked during mid-September, close to 6.9100, acts as the last defense of the USD/CNH bulls.

USD/CNH: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	6.9872
Today Daily Change	0.0068
Today Daily Change %	0.10%
Today daily open	6.9804

Trends
Daily SMA20	7.1135
Daily SMA50	7.1701
Daily SMA100	7.0242
Daily SMA200	6.8018

Levels
Previous Daily High	7.0002
Previous Daily Low	6.9504
Previous Weekly High	7.2598
Previous Weekly Low	7.005
Previous Monthly High	7.3568
Previous Monthly Low	7.0194
Daily Fibonacci 38.2%	6.9812
Daily Fibonacci 61.8%	6.9695
Daily Pivot Point S1	6.9539
Daily Pivot Point S2	6.9273
Daily Pivot Point S3	6.9041
Daily Pivot Point R1	7.0037
Daily Pivot Point R2	7.0269
Daily Pivot Point R3	7.0535

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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