USD/CNH Price Analysis: Refreshes 16-month under 6.8000 on China data, Sino-American trade optimism
- USD/CNH prints three-day losing streak with the largest monthly losses.
- China extends tariff extension on US goods imports, US eases travel warnings to China, Hong Kong.
- August month Industrial Production, Retail Sales both beat expectations.
- Bears aim to fill May 2019 gap, fresh buying will wait for a clear break above January’s low.
USD/CNH bears an unstoppable around 0.7850, down 0.36% intraday, during the early Tuesday’s trading. The pair recently slumped after trade-positive news from China followed welcome prints of Industrial Production and Retail Sales data. While portraying the fall, the bears attack the lowest levels since May 07, 2019.
Read: S&P 500 Futures: Back on the bids as China extends tariff exemption on US goods imports
Other than the fundamentals, the pair’s sustained trading below 200-week SMA favors the sellers.
As a result, the quote drops towards filling the early May 2019 gap between 6.7339 and 6.8102.
In a case where the USD/CNH prices remain downbeat past-6.7339, 50% and 61.8% Fibonacci retracement of the pair’s 2018-19 rise, respectively around 6.7175 and 6.6035 will gain market attention.
Meanwhile, an upside clearance of a 200-week SMA level of 6.8118 will trigger recovery moves towards the January month’s low near 6.8455.
USD/CNH weekly 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.
