USD/CNH Price Analysis: Refreshes multi-day low as bears approach 6.7650 support

USD/CNH drops to the lowest levels since August 17, 2022.
Clear break of 200-DMA, bearish MACD signals favor sellers as they eye two-month-old descending support line.
Previous support line from June adds to the upside filters.

Anil Panchal FXStreet

USD/CNH takes offers to renew a multi-day low around 6.7900 heading into Monday’s European session. In doing so, the offshore Chinese Yuan (CNH) pair extends the previous day’s downside break of the 200-DMA to poke the lowest levels since mid-August 2022.

Also adding strength to the bearish bias is the pair’s sustained trading below the support-turned-resistance line from early June, as well as the bearish MACD signals.

That said, USD/CNH bears are on their way to meeting a downward-sloping support line from November 14, close to 6.7650 by the press time.

The pair’s further downside, however, appears limited as the 61.8% Fibonacci retracement level of its February-October upside, near 6.7150, could challenge the USD/CNH sellers afterward. If not, then the mid-2022 low surrounding 6.6170 and the 6.6000 round figure will be in focus.

On the contrary, recovery moves may initially aim for the 50.0% Fibonacci retracement level surrounding 6.8420 ahead of confronting the 200-DMA level of 6.8730.

Following that, the seven-month-old support-turned-resistance line near 6.9240 will be in focus as it holds the key to the USD/CNH run-up towards the 7.0000 psychological magnet.

Overall, USD/CNH remains on the bear’s radar even if the downside room appears limited.

USD/CNH: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	6.7872
Today Daily Change	-0.0404
Today Daily Change %	-0.59%
Today daily open	6.8276

Trends
Daily SMA20	6.9585
Daily SMA50	7.0661
Daily SMA100	7.0684
Daily SMA200	6.8709

Levels
Previous Daily High	6.8932
Previous Daily Low	6.8236
Previous Weekly High	6.9396
Previous Weekly Low	6.8236
Previous Monthly High	7.0914
Previous Monthly Low	6.905
Daily Fibonacci 38.2%	6.8502
Daily Fibonacci 61.8%	6.8667
Daily Pivot Point S1	6.8031
Daily Pivot Point S2	6.7786
Daily Pivot Point S3	6.7335
Daily Pivot Point R1	6.8727
Daily Pivot Point R2	6.9178
Daily Pivot Point R3	6.9423

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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