USD/CNH technical analysis: At three-week lows on President Trump's tariff delay

President Trump delays tariff hikes by two weeks, sending China's Yuan to three-week highs against the US Dollar.
USD/CNH could drop further, as the 4-hour chart is now reporting pennant breakdown.

Omkar Godbole FXStreet Contributor

The bid tone around China's offshore Yuan (CNH) strengthened, pushing the USD/CNH pair to three-week lows after the US President Trump delayed the move to hike tariffs on $250 billion worth of Chinese goods (from 25% to 30%) to Oct. 15 from Oct. 1.

As of writing, the USD/CNH pair is trading at 7.0907, the lowest level since Aug. 23.

With the drop to four-week lows, the pair has confirmed a pennant breakdown on the 4-hour chart. That bearish continuation pattern indicates the consolidation (narrowing price range) has ended and the pullback from the recent high of 7.1956 has resumed.

So, the support at 7.05 could come into play in the next day or two. The outlook would turn bullish if the pair finds acceptance above 7.1317 (pennant high), although, as of now, that looks unlikely.

4-hour chart

Trend: Bearish

Technical levels

USD/CNH

Overview
Today last price	7.0907
Today Daily Change	-0.0178
Today Daily Change %	-0.25
Today daily open	7.1085

Trends
Daily SMA20	7.1218
Daily SMA50	7.0122
Daily SMA100	6.945
Daily SMA200	6.8589

Levels
Previous Daily High	7.1201
Previous Daily Low	7.1037
Previous Weekly High	7.1967
Previous Weekly Low	7.096
Previous Monthly High	7.1838
Previous Monthly Low	6.894
Daily Fibonacci 38.2%	7.11
Daily Fibonacci 61.8%	7.1138
Daily Pivot Point S1	7.1014
Daily Pivot Point S2	7.0943
Daily Pivot Point S3	7.0849
Daily Pivot Point R1	7.1179
Daily Pivot Point R2	7.1272
Daily Pivot Point R3	7.1343

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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