USD/CNH technical analysis: 2-week old resistance-line, 61.8% Fibo. restrict upside

USD/CNH struggles around near-term descending trend-line, 23.6% Fibonacci retracement.
A two-week-old symmetrical triangle limits the pair’s moves.

Anil Panchal FXStreet

USD/CNH trades near short-term key resistances as it takes the rounds to 7.07 during Wednesday’s Asian session.

With the two-week-old descending trend-line and 23.6% Fibonacci retracement of late-July to early-August rise limiting the pair’s immediate upside around 7.0757/40, prices are likely to witness a pullback towards multiple supports around 7.0570 numbers.

However, 38.2% Fibonacci retracement level of 7.0360 and 7.0240 might question sellers afterward, if not then 7.0037/15 area including triangle support and 50% Fibonacci retracement will lure bears.

If at all buyers manage to conquer 7.040/57 resistance-confluence, last week's high surrounding 7.1127 and monthly top near 7.14 will be bulls’ favorites.

USD/CNH 4-hour chart

Trend: Pullback expected

1. R3 7.0872
2. R2 7.0818
3. R1 7.0765
PP 7.0711
1. S1 7.0657
2. S2 7.0604
3. S3 7.055

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.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.