USD/CNH technical analysis: Looks south with head-and-shoulders breakdown on daily chart


  • USD/CNH's daily chart shows a head-and-shoulders breakdown. 
  • The bearish reversal pattern has created room for a drop to 6.95. 

USD/CNH, which represents China's offshore Yuan exchange rate, is currently trading at 7.0661, representing marginal losses on the day.

The CNH is looking to gain ground, as the People's Bank of China (PBOC) kept the one-year loan prime rate at 4.20%, disappointing expectations for a cut to 4.15%.

The daily chart is reporting a head-and-shoulders breakdown – a bearish reversal pattern. The 14-day relative strength index (RSI) is reporting bearish conditions with a below-50 print.

The pair, therefore, risks falling to support at 7.0309 (Sept. 13 low). Note that the head-and-shoulders breakdown has opened doors for 6.96 (target as per the measured move method).

The bearish case would be invalidated if the spot rises above a bearish lower high of 7.1125 created on Oct. 16.

Daily chart

Trend: Bearish

Technical levels

USD/CNH

Overview
Today last price 7.0662
Today Daily Change -0.0061
Today Daily Change % -0.09
Today daily open 7.0723
 
Trends
Daily SMA20 7.1159
Daily SMA50 7.1098
Daily SMA100 7.0127
Daily SMA200 6.8903
 
Levels
Previous Daily High 7.0881
Previous Daily Low 7.0694
Previous Weekly High 7.1127
Previous Weekly Low 7.0502
Previous Monthly High 7.1967
Previous Monthly Low 7.0311
Daily Fibonacci 38.2% 7.0765
Daily Fibonacci 61.8% 7.0809
Daily Pivot Point S1 7.0651
Daily Pivot Point S2 7.0578
Daily Pivot Point S3 7.0463
Daily Pivot Point R1 7.0838
Daily Pivot Point R2 7.0953
Daily Pivot Point R3 7.1026

 

 

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