USD/CNH Price Analysis: Weekly chart suggests further downside

USD/CNH keeps the break of 16-month-old trend line despite bouncing off 6.9276.
Bearish MACD, lack of oversold RSI indicates room for additional declines.
6.9700 resistance confluence restricts the pair’s immediate upside.

Anil Panchal FXStreet

USD/CNH picks up the bids near 6.9355/60 during the early Thursday. The pair refreshed five-month low the previous day. In doing so, it extends the downside break of an ascending trend line from April 2019.

Other than the sustained downside below the key support line, now resistance, bearish MACD and an absence of oversold RSI conditions also favor the sellers.

As a result, March month’s low near 6.9050 acts as immediate support for the pair sellers to watch ahead of 6.9000 round-figures. In a case where the bears dominate past-6.9000, the yearly bottom surrounding 6.8455 will be challenged.

Alternatively, the support-turned-resistance line joins 23.6% Fibonacci retracement of the pair’s upside between March 2018 and September 2019 to confine the immediate upside near 6.9700.

Additionally, 7.000 psychological magnet and late-July top near 7.0300 could lure the bulls past-6.9700.

USD/CNH weekly chart

Trend: Bearish

Additional important levels

Overview
Today last price	6.9348
Today Daily Change	0.0018
Today Daily Change %	0.03%
Today daily open	6.933

Trends
Daily SMA20	6.9819
Daily SMA50	7.0265
Daily SMA100	7.0655
Daily SMA200	7.0297

Levels
Previous Daily High	6.955
Previous Daily Low	6.9316
Previous Weekly High	6.9938
Previous Weekly Low	6.9322
Previous Monthly High	7.0764
Previous Monthly Low	6.9642
Daily Fibonacci 38.2%	6.9406
Daily Fibonacci 61.8%	6.946
Daily Pivot Point S1	6.9248
Daily Pivot Point S2	6.9166
Daily Pivot Point S3	6.9015
Daily Pivot Point R1	6.9481
Daily Pivot Point R2	6.9632
Daily Pivot Point R3	6.9714

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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