USD/CNH Price Analysis: Yuan sellers need validation from 7.3000 and Jackson Hole speeches
- USD/CNH picks up bids to defy downside break of one-month-old support line.
- 21-SMA, weekly resistance line join bearish MACD signals to prod Yuan pair buyers.
- Sellers need validation from 100-SMA, 7.2500 to retake control.
- Jackson Hole Symposium begins, major central banks’ policy pivot confirmation sought after downbeat PMIs.
USD/CNH reverses the previous day’s losses while refreshing the intraday high around 7.2915 amid early Thursday. In doing so, the offshore Chinese Yuan (CNH) pair prods the support-turned-resistance line from late July amid market’s consolidation ahead of the top-tier US data and Jackson Hold speeches.
It’s worth noting that the previous day’s downbeat PMIs for August renewed policy pivot concerns about them major central banks and highlight August 24-26 speeches at the Jackson Hole Symposium.
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Apart from the cautious mood, the previous support line surrounding 7.2920 and the bearish MACD signals also challenge the USD/CNH buyers.
Following that, a convergence of the 21-DMA and one-week-long falling trend line, close to the 7.3000 round figure will be a tough nut to crack for the bulls before challenging the monthly high of near 7.3500.
On the flip side, the USD/CNH sellers may wait for a clear downside below the previous day’s bottom of around 7.2810 to initial the intraday short positions.
Even so, the 100-SMA and early August highs, respectively near 7.2595 and 7.2510, will challenge the Yuan pair sellers before giving them control.
USD/CNH: Four-hour chart
Trend: Limited upside expected
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.
