USD/CNH Technical Analysis: Steps back from 7.0456/55 resistance confluence

USD/CNH nears 50-day EMA, 38.2% Fibonacci retracement.
A monthly trend line limits the immediate downside.
50% of Fibonacci retracement will be in focus after the breakout.

Anil Panchal FXStreet

Failure to rise past 50-day Exponential Moving Average (EMA) and 38.2% Fibonacci retracement of September-November fall drag the USD/CNH pair to 7.0427 during early Tuesday.

As a result, prices can revisit an upward sloping trend line since November 07, at 7.0200. However, pair’s further declines make it vulnerable to test November 05 low of 6.9860 and the previous month’s low around 6.9525.

Meanwhile, 12-bar Moving Average Convergence and Divergence (MACD) favors the pair’s run-up beyond 7.0455/56 resistance confluence.

In doing so, a 50% Fibonacci retracement level of 7.0750 and mid-October high near 7.1130 will be on the Bull’s radar.

Though, a descending trend line since early September, at 7.1210 could challenge buyers afterward.

USD/CNH daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	7.0419
Today Daily Change	-0.0018
Today Daily Change %	-0.03%
Today daily open	7.0437

Trends
Daily SMA20	7.0194
Daily SMA50	7.0645
Daily SMA100	7.0546
Daily SMA200	6.9321

Levels
Previous Daily High	7.0456
Previous Daily Low	7.0261
Previous Weekly High	7.0429
Previous Weekly Low	7.0083
Previous Monthly High	7.0536
Previous Monthly Low	6.9524
Daily Fibonacci 38.2%	7.0382
Daily Fibonacci 61.8%	7.0335
Daily Pivot Point S1	7.0313
Daily Pivot Point S2	7.019
Daily Pivot Point S3	7.0118
Daily Pivot Point R1	7.0508
Daily Pivot Point R2	7.058
Daily Pivot Point R3	7.0703

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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