USD/CNH Price Analysis: Weak inside two-week-old descending triangle

USD/CNH snaps three-day winning streak.
61.8% of Fibonacci retracement can lure sellers below the triangle’s support.
100-day SMA offers an intermediate halt to the monthly top.

Anil Panchal FXStreet

USD/CNH declines to 6.9840 during early Monday. In doing so, the pair respects a two-week-old descending triangle formation.

As a result, sellers can now take aim at the pattern’s support and 38.2% Fibonacci retracement of January 20 to February 04 upside, around 6.9575/55 area.

However, a sustained downside below the same, which is less likely, might not refrain from challenging the 61.8% Fibonacci retracement level of 6.9130.

Alternatively, the pair’s upside break of triangle’s resistance, at 6.9980 now, requires a validation from a 100-day SMA level on the daily chart, currently around 7.0120, to challenge the monthly top near 7.0235.

If at all buyers dominate past-7.0235, December month high near 7.0870 will become their next target.

USD/CNH four-hour chart

Trend: Bearish

Additional important levels

Overview
Today last price	6.9856
Today Daily Change	-0.0070
Today Daily Change %	-0.10%
Today daily open	6.9926

Trends
Daily SMA20	6.9664
Daily SMA50	6.9657
Daily SMA100	7.012
Daily SMA200	6.9982

Levels
Previous Daily High	6.9968
Previous Daily Low	6.981
Previous Weekly High	7.0126
Previous Weekly Low	6.9574
Previous Monthly High	7.0071
Previous Monthly Low	6.8457
Daily Fibonacci 38.2%	6.9908
Daily Fibonacci 61.8%	6.987
Daily Pivot Point S1	6.9836
Daily Pivot Point S2	6.9744
Daily Pivot Point S3	6.9678
Daily Pivot Point R1	6.9992
Daily Pivot Point R2	7.0058
Daily Pivot Point R3	7.015

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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