USD/CNH Price Analysis: Seller exhaustion at three-month lows


  • USD/CNH is sidelined in Asia, having printed three-month lows on Thursday. 
  • Thursday's Doji candle represents downtrend exhaustion and neutralizes immediate bearish view,

USD/CNH dropped to a three-month low of 6.9809 on Thursday and ended up creating a Doji candle on the daily chart

A Doji comprises long shadows, representing two-way price action and a small body, representing a flat close. Usually, it is reflective of indecision in the marketplace. In this case, however, the Doji candle has appeared at multi-month lows and following a sell-off from the May 27 high of 7.1964 and represents seller exhaustion.

However, a reversal higher would be confirmed if the pair ends Friday above the Doji candle’s high of 7.00. Alternatively, a close below the Doji candle’s low of 6.9809 would imply a continuation of the sell-off from the highs seen in May. 

At press time, the pair is trading largely unchanged on the day at 6.9969. 

Daily chart

Trend: Seller exhaustion

Technical levels

USD/CNH

Overview
Today last price 6.9978
Today Daily Change 0.0010
Today Daily Change % 0.01
Today daily open 6.9968
 
Trends
Daily SMA20 7.0613
Daily SMA50 7.0942
Daily SMA100 7.074
Daily SMA200 7.0404
 
Levels
Previous Daily High 7.0012
Previous Daily Low 6.9808
Previous Weekly High 7.088
Previous Weekly Low 7.0584
Previous Monthly High 7.1518
Previous Monthly Low 7.04
Daily Fibonacci 38.2% 6.9886
Daily Fibonacci 61.8% 6.9935
Daily Pivot Point S1 6.9847
Daily Pivot Point S2 6.9726
Daily Pivot Point S3 6.9643
Daily Pivot Point R1 7.0051
Daily Pivot Point R2 7.0134
Daily Pivot Point R3 7.0255

 

 

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