USD/CNH Price Analysis: Rejected at bearish 5-day MA, risks revisiting recent lows

  • USD/CNH looks set to revisit the weekly low of 6.8659. 
  • A deeper drop looks unlikely as the US-China phase one deal was priced in advance. 

USD/CNH is reversing lower from the descending or bearish 5-day moving average (MA) resistance and risks revisiting the weekly low of 6.8659.

The pair is currently trading at 6.8858, having faced rejection at the 5-day MA hurdle at 6.8907 a few minutes ago.

The failure to take out the MA hurdle has reinforced the bearish view put forward by the long upper wick attached to Wednesday's candle and shifted risk in favor of a drop to 6.8659 (Tuesday's low).

However, dips below that level could be short-lived, as the CNH may come under pressure due to "sell the fact" trade.

Markets have bought the offshore Yuan since the beginning of the fourth quarter of 2019 in anticipation of the US-China phase one trade deal. The pair has dropped from 7.1675 to 6.8659 over the last 3.5-months. Now that the deal is signed, markets may book out of long CNH positions, helping USD/CNH regain some poise.

Daily chart

Trend: Bearish

Technical levels


Today last price 6.8841
Today Daily Change -0.0076
Today Daily Change % -0.11
Today daily open 6.8917
Daily SMA20 6.9593
Daily SMA50 6.9954
Daily SMA100 7.0471
Daily SMA200 6.9746
Previous Daily High 6.9059
Previous Daily Low 6.8849
Previous Weekly High 6.9779
Previous Weekly Low 6.9102
Previous Monthly High 7.0879
Previous Monthly Low 6.9048
Daily Fibonacci 38.2% 6.8979
Daily Fibonacci 61.8% 6.8929
Daily Pivot Point S1 6.8824
Daily Pivot Point S2 6.8731
Daily Pivot Point S3 6.8614
Daily Pivot Point R1 6.9035
Daily Pivot Point R2 6.9152
Daily Pivot Point R3 6.9245



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD pressured under 1.11 amid virus fears, ahead of the ECB

EUR/USD is trading below 1.11, under pressure as fears of the coronavirus weigh on markets. The ECB is set to leave rates unchanged and provide views about the current economic environment. 


GBP/USD consolidates gains above 1.31 after parliament seals Brexit

GBP/USD is trading above 1.31, consolidating its gains. The House of Lords gave its final seal to Brexit. Speculation ahead of the BOE's decision continues after upbeat data diminished chances for an imminent move.


Forex Today: Coronavirus fears spread and weigh on markets, Aussie surges, all eyes on the ECB

Chinese authorities have shut down access links to Wuhan, the large provincial capital where the coronavirus originates from. The news, coming ahead of the Chinese Lunar New Year, is weighing on markets. 

Read more

WTI hits 7-week low, potential bull RSI divergence on 1H

WTI oil fell to $55.68 soon before press time, the lowest level since Dec. 3, having declined by 3.73% on Wednesday. The black gold has found acceptance below $56.60, which is the 61.8% Fibonacci retracement (one of the golden ratio) of the rally from $51.03 to $65.62.

Oil News

USD/JPY drops to fresh eight-day lows near 109.50

USD/JPY extends losses and trades close to an eight-day low near 109.50 in a relatively risk-off environment, with the media headlines full of the coronavirus as it spreads internationally. Bears can look to the golden ratio around mid-108s.