USD/CNH technical analysis: 50-day EMA offers immediate stop to the downpour


  • USD/CNH drops the lowest since August 19.
  • 50-day EMA could restrict further declines ahead of highlighting five-month-old rising trend-line.

Following its sustained trading below the 21-day exponential moving average (EMA), USD/CNH plummets to the lowest since mid-August as it trades near 7.050 while heading into the European session on Friday.

50-day EMA level of 7.0417 acts as immediate strong support for the pair, breaking which 38.2% Fibonacci retracement of April-September rise, at 7.000, could question sellers, if not then a rising trend-line since mid-April around 6.9665 will be the key to watch.

Alternatively, 7.0850 can limit the pair’s advances to 21-day EMA level of 7.0996 while 7.1400 and latest high surrounding 7.1970 might entertain bulls then after.

It should also be noted that pair’s north-run beyond 7.1970, can easily overcome 7.2000 round-figure.

USD/CNH daily chart

Trend: pullback expected

additional important levels

Overview
Today last price 7.0479
Today Daily Change -0.0206
Today Daily Change % -0.29%
Today daily open 7.0685
 
Trends
Daily SMA20 7.1228
Daily SMA50 7.016
Daily SMA100 6.9482
Daily SMA200 6.8599
Levels
Previous Daily High 7.1119
Previous Daily Low 7.0519
Previous Weekly High 7.1967
Previous Weekly Low 7.096
Previous Monthly High 7.1838
Previous Monthly Low 6.894
Daily Fibonacci 38.2% 7.0748
Daily Fibonacci 61.8% 7.089
Daily Pivot Point S1 7.043
Daily Pivot Point S2 7.0174
Daily Pivot Point S3 6.983
Daily Pivot Point R1 7.103
Daily Pivot Point R2 7.1374
Daily Pivot Point R3 7.1629

 

 

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