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.

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

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: A tough barrier remains around 0.6800

AUD/USD: A tough barrier remains around 0.6800

AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.

AUD/USD News
EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.

EUR/USD News
Gold surrenders gains and drops to weekly lows near $2,550

Gold surrenders gains and drops to weekly lows near $2,550

Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.

Gold News
Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.

Read more
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting

UK CPI set to grow at stable 2.2% in August ahead of BoE meeting

The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures