USD/CNH Price Analysis: Signs of seller exhaustion on D1

USD/CNH's daily MACD histogram shows downside move is running out of steam.
The pair may witness an oversold bounce in the short-term.

Omkar Godbole FXStreet Contributor

USD/CNH is trading near 6.9112 at press time, representing marginal losses on the day, having put in a six-month low of 6.8936 on Friday.

The People’s Bank of China raised the daily yuan fix to 6.9194 from 6.9107. So far, however, that has failed to lift USD/CNH (put the offshore yuan under pressure).

The daily chart MACD, an indicator used to gauge trend strength and trend changes, is now producing higher lows – a sign of weakening of the downward momentum. The long wicks attached to Friday’s candle also indicate bearish exhaustion.

As such, a corrective bounce to former support-turned-resistance of 6.9643 (July 22 low) could be seen. Alternatively, an acceptance under Friday’s low of 6.8936 would signal a resumption of the sell-off.

Daily chart

Trend: Corrective bounce likely

Technical levels

USD/CNH

Overview
Today last price	6.9134
Today Daily Change	-0.0082
Today Daily Change %	-0.12
Today daily open	6.9216

Trends
Daily SMA20	6.9563
Daily SMA50	7.0055
Daily SMA100	7.0533
Daily SMA200	7.0269

Levels
Previous Daily High	6.9256
Previous Daily Low	6.8934
Previous Weekly High	6.9464
Previous Weekly Low	6.8934
Previous Monthly High	7.0764
Previous Monthly Low	6.9642
Daily Fibonacci 38.2%	6.9133
Daily Fibonacci 61.8%	6.9058
Daily Pivot Point S1	6.9014
Daily Pivot Point S2	6.8814
Daily Pivot Point S3	6.8692
Daily Pivot Point R1	6.9336
Daily Pivot Point R2	6.9458
Daily Pivot Point R3	6.9658

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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