USD/CNH Technical Analysis: Eyes 7.00, PBOC fix likely bolstered the bullish chart setup

The PBOC set the yuan reference rate at 6.9510 - the highest level since January 2017.
The weaker fix has likely bolstered the bullish chart setup: the pair has found acceptance above 6.9584 (August high) and the bullish breakout is backed by the ascending (bullish) 5-day and 10-day exponential moving averages (EMAs). The 14-day relative strength index (RSI) is biased bullish and is well short of the July high of 89.00.
Over on the 4-hour chart, 50-, 100-, and 200-hour EMAs are trending north. The RSI is biased bullish and rising, having established a base around 50.00 in the last four weeks.
The currency pair looks set to test the psychological level of 7.00. Watch out for a sudden bearish reversal from above 7.00, as the PBOC may intervene to halt the slide in the Chinese currency.

Omkar Godbole FXStreet Contributor

Daily Chart

4-hour Chart

Spot Rate: 6.9730

Daily High: 6.9735

Daily Low: 6.9517

Trend: Bullish

Resistance

R1: 6.9861 (December 2016 high)

R2: 7.00 (psychological hurdle)

Support

S1: 6.9527 (5-day EMA)

S2: 6.9396 (10-day EMA)

S3: 6.90 (psychological support)

Author

Omkar Godbole

FXStreet Contributor

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

British Pound eases to 1.3450 area following downwardly revised Manufacturing PMI data

The British Pound is trimming previous gains against the US Dollar on Monday, returning to the mid-range of the 1.3400s down from fresh seven-week highs, above 1.3500 earlier on the day. Weaker-than-expected UK manufacturing data added pressure on the Pound, which rallied at the Asian session opening, amid news of a halt to the hostilities in Iran.

EUR/USD challenges 1.1500 on Dollar’s recovery

EUR/USD now accelerates its downtrend and comes closer to the 1.1500 level on Monday. The pair’s correction follows the decent improvement in the US Dollar amid solid data US releases and easing concerns on the geopolitical front.

Gold: The $4,000 mark holds the downside for now

Gold adds to Friday’s pullback, although it remains well underpinned by the key $4,000 threshold per troy ounce on Monday. The US Dollar’s inconclusive price action seems enough to cap the yellow metal’s potential upside, although renewed hopes for a US-Iran peace deal and fading expectations of a Fed rate hike could limit the Greenback’s recovery.

Ethereum Price Forecast: BitMine extends share buyback spree, scoops over 10K ETH

Ethereum (ETH) treasury firm BitMine Immersion Technologies (BMNR) continued its share buyback spree last week after repurchasing 4.5 million shares of its common stock. This purchase brings the total stock buyback since July 1 to 16.1 million shares, part of a previously authorized $4 billion repurchase plan.

AI defies the disinflationary playbook: Why lower oil prices might not be enough to cool core inflation

The global economic landscape has been fixated on the Middle East since the US-Iran war started in late February, reacting to significant changes in crude Oil prices and assessing how they could influence inflation dynamics and growth outlook.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.