CFD News

USD/CNH Price Analysis: Further downside towards sub-6.9000 zone appears compelling

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USD/CNH stays compelled at three-month low, down for the sixth consecutive day.
Clear ruin of multi-day-old aid line, bearish MACD indicators prefer sellers.
Lows marked in October, November protect instant upside.
USD/CNH bears hold the reins in the course of early Tuesday, printing a six-day south-run round 6.9570 by means of the press time. In doing so, the offshore Chinese Yuan (CNH) pair justifies the preceding week’s draw back wreck of an ascending vogue line from April.

Given bearish MACD indicators favoring the USD/CNH pair’s style line break, the dealers are well-set to undertaking the month-to-month low marked the preceding day round 6.9300.

Following that, September 10 swing low close to 6.9100 might also act as an intermediate halt throughout the probably fall in the direction of a six-month-old ascending guide line, shut to 6.8940 at the latest.

In a case where USD/CNH stays bearish previous 6.8940, the 50% Fibonacci retracement stage of the pair’s run-up from late March to October, round 6.8600, will precede the 200-DMA aid close to 6.8015 to project the similarly downside.

Alternatively, restoration stays elusive except the quote stays beneath the support-turned-resistance line stretched from April, close to 7.0700 through the press time.

That said, an region comprising lows marked at some stage in November and October, round 7.0130-200, restricts the pair’s instantaneous upside.

It’s worth noting that a couple of hurdles surrounding 7.2600-2700 ought to query the USD/CNH bulls earlier than giving them control.

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