USD/CNH Price Analysis: Sellers keep reins despite downbeat China data

USD/CNH fades the biggest daily gains in over a week, grinds lower of late.
China Caixin Services PMI for January dropped below market consensus, prior.
100-SMA, weekly support line restricts short-term downside, bulls have a bumpy road to return.

Anil Panchal FXStreet

USD/CNH hovers around $6.3620-15 as Chinese traders return from a week-long break on Monday.

The Chinese currency (CNY) pair’s recent weakness ignores softer activity numbers but hopes of easing inflation and chatters surrounding the stronger yuan while paying attention to talks of easing inflation in China.

China’s China Caixin Services PMI dropped to 51.4 in January, versus 52.9 market consensus and 53.1 prior.

Technically, the pair drifts lower between the 200-SMA and 100-SMA, around $6.3645 and $6.3540 respectively.

Also acting as trading filters is a one-week-old descending support line around $6.3470 and a monthly horizontal resistance zone near $6.3760-70.

It should be noted, however, that the USD/CNY buyers remain unconvinced below January’s top surrounding $6.3975 whereas the bears may aim for the multi-month low, marked the previous month around $6.3235, on breaking the $6.3470 support.

USD/CNH: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	6.3612
Today Daily Change	-0.0021
Today Daily Change %	-0.03%
Today daily open	6.3633

Trends
Daily SMA20	6.3574
Daily SMA50	6.3681
Daily SMA100	6.3926
Daily SMA200	6.4226

Levels
Previous Daily High	6.369
Previous Daily Low	6.3488
Previous Weekly High	6.3864
Previous Weekly Low	6.3488
Previous Monthly High	6.3976
Previous Monthly Low	6.3236
Daily Fibonacci 38.2%	6.3613
Daily Fibonacci 61.8%	6.3566
Daily Pivot Point S1	6.3518
Daily Pivot Point S2	6.3402
Daily Pivot Point S3	6.3316
Daily Pivot Point R1	6.372
Daily Pivot Point R2	6.3806
Daily Pivot Point R3	6.3922

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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