USD/CNY technical analysis: Buyers and sellers jostle between 21/200 DMA

38.2% Fibonacci retracement, 200-DMA limits the USD/CNY pair’s downside with 21-DMA guarding the opposite side.
6.9000 offers additional filter towards the north.

Anil Panchal FXStreet

Although failure to cross the 21-day moving average (21-DMA) portrays the USD/CNY pair’s weakness as it trades near 6.8716 during early Friday, quote’s downside has been confined by 38.2% Fibonacci retracement of March-June upside and 200-day moving average (200-DMA).

Considering the pair’s latest pullback, 6.8647 and 6.8520 might entertain short-term sellers ahead of challenging them with the key 6.8345/12 support-confluence.

Given the bears’ ability to drive prices down 6.8312, a plunge to an early-May high of 6.7834 can’t be denied.

Alternatively, an upside clearance of 21-DMA level of 6.8907 can trigger the pair’s fresh rise towards 6.9000 round-figure whereas 6.9223 and June month high around 6.9357 might please buyers afterward.

USD/CNY daily chart

Trend: Sideways

1. R3 6.8933
2. R2 6.8872
3. R1 6.8794
PP 6.8733
1. S1 6.8655
2. S2 6.8594
3. S3 6.8516

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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