USD/CNY technical analysis: Sellers aim for 6.8830/40, 61.8% Fibo. on the break of 21-day SMA

Downward sloping RSI and a closing break of 21-DMA favor bears.
A 5.5-month-old horizontal area becomes near-term strong support to watch.

Anil Panchal FXStreet

The USD/CNY pair’s sustained downturn below 21-day SMA speaks loud of its weakness despite the latest pullback. The quote presently takes the bids near 6.9065 during early Wednesday.

Should the quote manages to clear 6.9110 level comprising 21-day simple moving average (SMA), 6.9200 and current month high around 6.9360 could mark their presence on the chart.

However, late-November 2018 tops near 6.9610 will be on the bulls’ radar past-6.9360.

On the downside, 6.9000 round-figure could serve as immediate support, a break of which pushes the sellers towards aiming 6.8830/40 horizontal area including early-January high and May month low.

It should also be noted that 14-day relative strength index (RSI) seems taking a U-turn from the overbought region and increases the odds for southward price momentum.

Given the pair refrains from respecting 6.8830 support, 61.8% Fibonacci retracement of October to March decline, surrounding 6.8600. could flash on bear’s list.

USD/CNY daily chart

Trend: Bearish

Additional important levels

Overview
Today last price	6.9067
Today Daily Change	34 pips
Today Daily Change %	0.05%
Today daily open	6.9033

Trends
Daily SMA20	6.9112
Daily SMA50	6.8282
Daily SMA100	6.7762
Daily SMA200	6.8302

Levels
Previous Daily High	6.9307
Previous Daily Low	6.9032
Previous Weekly High	6.9357
Previous Weekly Low	6.9097
Previous Monthly High	6.9224
Previous Monthly Low	6.7345
Daily Fibonacci 38.2%	6.9137
Daily Fibonacci 61.8%	6.9202
Daily Pivot Point S1	6.8941
Daily Pivot Point S2	6.8849
Daily Pivot Point S3	6.8666
Daily Pivot Point R1	6.9216
Daily Pivot Point R2	6.9399
Daily Pivot Point R3	6.9491

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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