USD/CNY Price Analysis: Extends bounce off June 2018 low on downbeat China CPI

USD/CNY refreshes intraday high as China CPI shrank for the first time since October 2009.
50-HMA, weekly resistance line probe buyers, sellers await fresh multi-month low for entries.

Anil Panchal FXStreet

USD/CNY seesaws around intraday high of 6.5346, currently near 6.5335, during early Wednesday. The pair jumped to refresh the day’s peak after China’s November month Consumer Price Index (CPI) and Producer Price Index (PPI) data.

While CPI turned negative for the first time since late-2009, PPI recovered from a -1.8% forecast to -1.5% YoY.

Read: China's November Consumer Price Index weaker at -0.5%, first decline since Oct 2009

Even so, the pair needs to cross a confluence of 50-HMA and a falling trend line from Friday, near 6.5340/50, to convince buyers to attack last Wednesday’s low near 6.5530. Also acting as an upside barrier is the 200-HMA level of 6.5627.

Alternatively, the 6.5300 threshold and the recent low, also the lowest since June 25, 2018, around 6.5210, will entertain the sellers during fresh downside.

In a case where the USD/CNY bears dominate past-6.5210, the early January 2018 low near 6.4750 may gain the market’s attention.

USD/CNY hourly chart

Trend: Bearish

Additional important levels

Overview
Today last price	6.5339
Today Daily Change	0.0007
Today Daily Change %	0.01%
Today daily open	6.5332

Trends
Daily SMA20	6.573
Daily SMA50	6.6548
Daily SMA100	6.7732
Daily SMA200	6.9185

Levels
Previous Daily High	6.5391
Previous Daily Low	6.521
Previous Weekly High	6.5945
Previous Weekly Low	6.5273
Previous Monthly High	6.7496
Previous Monthly Low	6.5404
Daily Fibonacci 38.2%	6.5322
Daily Fibonacci 61.8%	6.5279
Daily Pivot Point S1	6.5231
Daily Pivot Point S2	6.513
Daily Pivot Point S3	6.505
Daily Pivot Point R1	6.5412
Daily Pivot Point R2	6.5492
Daily Pivot Point R3	6.5593

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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