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.

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.