USD/CNH: trapped between key MAs

USD/CNH (offshore yuan) is trading the narrow range defined by the 50- and 200-hour MAs.
Risk-on could push the pair above the 200-hour MA.

Omkar Godbole FXStreet Contributor

The USD/CNH pair is trapped between the 50- and 200-hour moving averages (MAs), currently at 6.7726 and 6.7897, respectively.

Reports hit the wires yesterday that the US is considering reducing or lifting tariffs on China with an aim to win China's support for long-term reforms. In response, stocks picked up a bid, helping USD/CNH defend the 50-hour MA.

More importantly, the futures on the S&P 500 are currently reporting a 0.28 percent gain, that is, the risk assets are likely to remain bid. Therefore, USD/CNH risks penetrating the 200-hour MA hurdle.

That would boost the prospects of a stronger recovery rally. After all, the 14-day relative strength index (RSI) is reporting oversold conditions. As of writing, the pair is trading at 6.7830.

USD/CNH Technical Levels

USD/CNH

Overview:
    Today Last Price: 6.7842
    Today Daily change: 112 pips
    Today Daily change %: 0.165%
    Today Daily Open: 6.773
Trends:
    Daily SMA20: 6.8434
    Daily SMA50: 6.8862
    Daily SMA100: 6.8915
    Daily SMA200: 6.7286
Levels:
    Previous Daily High: 6.7941
    Previous Daily Low: 6.7534
    Previous Weekly High: 6.8687
    Previous Weekly Low: 6.7376
    Previous Monthly High: 6.9509
    Previous Monthly Low: 6.826
    Daily Fibonacci 38.2%: 6.7786
    Daily Fibonacci 61.8%: 6.7689
    Daily Pivot Point S1: 6.7529
    Daily Pivot Point S2: 6.7328
    Daily Pivot Point S3: 6.7122
    Daily Pivot Point R1: 6.7936
    Daily Pivot Point R2: 6.8142
    Daily Pivot Point R3: 6.8343

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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