USD/CNH Price Analysis: Stays on the way to 50-DMA despite upbeat China PMI

USD/CNH recovers from intraday low, stays positive for second consecutive day.
China’s official PMI data arrived better than expected in December.
Sustained break of 21-DMA, firmer oscillators favor bulls.
The previous resistance line from September becomes critical support.

Anil Panchal FXStreet

USD/CNH picks up bids to extend the previous day’s rebound, bouncing off intraday low to $6.3775 during early Friday in Asia.

In doing so, the offshore Chinese currency (CNH) pair fails to cheer upbeat official PMI data for December. That said, China’s NBS Manufacturing Purchasing Managers' Index (PMI) grew past the 50.1 forecast and prior release to 50.3 while the Non-Manufacturing PMI rose to 52.7 versus 52.3 previous readouts but eased below 53.1 market consensus.

Technically, the pair’s sustained bounce off 21-DMA joins firmer RSI and bullish MACD signals to direct USD/CNH buyers towards the 50-DMA, around $6.3825 at the latest.

However, the monthly top around $6.3940 and the $6.4000 threshold will challenge the pair’s further upside.

Meanwhile, pullback moves remain elusive until staying beyond the 21-DMA level of $6.3743, a break of which will direct the quote towards the weekly low of $6.3660.

It should be noted, though, that a three-month-old resistance-turned-support line near $6.3500, becomes crucial support to watch for the USD/CNH traders.

USD/CNH: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	6.377
Today Daily Change	0.0022
Today Daily Change %	0.03%
Today daily open	6.3748

Trends
Daily SMA20	6.3742
Daily SMA50	6.3828
Daily SMA100	6.4189
Daily SMA200	6.4439

Levels
Previous Daily High	6.3794
Previous Daily Low	6.367
Previous Weekly High	6.3902
Previous Weekly Low	6.37
Previous Monthly High	6.4094
Previous Monthly Low	6.3616
Daily Fibonacci 38.2%	6.3747
Daily Fibonacci 61.8%	6.3717
Daily Pivot Point S1	6.3681
Daily Pivot Point S2	6.3613
Daily Pivot Point S3	6.3556
Daily Pivot Point R1	6.3806
Daily Pivot Point R2	6.3863
Daily Pivot Point R3	6.3931

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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