USD/CNH Price Analysis: Reverses post-FOMC run-up below 50-DMA


  • USD/CNH consolidates Fed-led gains below the key moving average.
  • Bullish MACD signals back another effort to cross the DMA hurdle.
  • April low, mid-May high adds to the upside barriers, monthly horizontal support lures sellers.

USD/CNH takes offers around 6.4255, down 0.22% intraday, while trimming the previous day’s gains amid early Thursday.

The offshore Chinese Yuan (CNH) jumped to the highest in a month by crossing multiple hurdles around 6.4100 following the US Federal Reserve (Fed) monetary policy announcements. Even so, the quote couldn’t cross 50-day SMA (DMA) and reverses afterward.

Read: US Fed: “Here We Come, Ready to Taper”, bond yields soar

While the quote’s latest pullback eyes the previous resistance from May 24, around 6.4100, any further weakness will be questioned by an ascending support line from May 31 and bullish MACD.

If at all the USD/CNH bears keep reins past-6.4100, 6.3780 may offer an intermediate halt during the pair’s slump towards the multi-month low, flashed last month, around 6.3525.

Alternatively, a clear break above the 50-DMA level of 6.4460 could push the pair prices towards another upside barrier surrounding 6.4615-20 comprising April low and early May’s high.

It should, however, be noted that the pair’s successful rally beyond 6.4620 will help the USD/CNH bulls to challenge the previous month’s high of 6.4930.

USD/CNY daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price 6.4258
Today Daily Change -0.0138
Today Daily Change % -0.21%
Today daily open 6.4396
 
Trends
Daily SMA20 6.397
Daily SMA50 6.4482
Daily SMA100 6.4695
Daily SMA200 6.5407
 
Levels
Previous Daily High 6.4418
Previous Daily Low 6.3902
Previous Weekly High 6.402
Previous Weekly Low 6.378
Previous Monthly High 6.493
Previous Monthly Low 6.3524
Daily Fibonacci 38.2% 6.4221
Daily Fibonacci 61.8% 6.41
Daily Pivot Point S1 6.406
Daily Pivot Point S2 6.3723
Daily Pivot Point S3 6.3544
Daily Pivot Point R1 6.4576
Daily Pivot Point R2 6.4755
Daily Pivot Point R3 6.5092

 

 

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