USD/CNH Price Analysis: Stays on the way to 7.1850 SMA hurdle

USD/CNH extends the rebound from resistance-turned-support line towards 100-SMA.
RSI suggests further grinding below the key Simple Moving Averages (SMAs).
200-SMA adds to the upside filters, sellers need validation from 7.1180-60 support confluence.

Anil Panchal FXStreet

USD/CNH buyers keep the reins around 7.1630 during early Wednesday morning in Europe, defending Tuesday’s U-turn from the previous resistance line.

In doing so, the offshore Chinese Yuan (CNH) reverses the previous day’s losses while bracing for the 100-SMA hurdle surrounding 7.1850.

Given the steady prints of the Relative Strength Index (RSI), placed at 14, the latest recovery is likely to prevail.

Also favoring the USD/CNH bulls is the pair’s sustained trading beyond the convergence of the ascending trend line from November 13 and the aforementioned resistance-turned-support, around 7.1180-60.

If the quote drops below 7.1160, the odds of witnessing a slump toward the monthly low of 7.0195 can’t be ruled out. However, October’s low of 7.0126 could challenge the USD/CNH pair’s further declines.

Alternatively, the 200-SMA level of 7.2105 acts as an extra filter towards the north, in addition to the 100-SMA hurdle near 7.1850.

Should the USD/CNH bulls keep the reins past 7.2105, the 61.8% Fibonacci retracement of the pair’s downturn between October 25 to November 15, around 7.2400, will precede the November 09 swing high of 7.2800 to please the buyers.

USD/CNH: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	7.1642
Today Daily Change	0.0232
Today Daily Change %	0.32%
Today daily open	7.141

Trends
Daily SMA20	7.1991
Daily SMA50	7.1641
Daily SMA100	6.9876
Daily SMA200	6.763

Levels
Previous Daily High	7.181
Previous Daily Low	7.1316
Previous Weekly High	7.1788
Previous Weekly Low	7.0194
Previous Monthly High	7.3748
Previous Monthly Low	7.0126
Daily Fibonacci 38.2%	7.1505
Daily Fibonacci 61.8%	7.1622
Daily Pivot Point S1	7.1214
Daily Pivot Point S2	7.1018
Daily Pivot Point S3	7.072
Daily Pivot Point R1	7.1708
Daily Pivot Point R2	7.2006
Daily Pivot Point R3	7.2203

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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