- USD/CNH edges lower on Thursday following disappointing China’s PMI data.
- Price attempts to take out 6.48 for two sessions but fails.
- MACD remains neutral near the midline and adopts a wait-and-watch approach.
USD/CNH fails to sustain the previous day’s gain on Thursday and retreats from the higher levels. The pair opened higher albeit fizzled out rather quickly to touch the intraday low at 6.4710. At the time of writing, USD/CNH is trading at 6.4718, down 0.08% for the day.
USD/CNH daily chart
-637685695964812984.png)
On the daily chart, the USD/CNH has been facing downward pressure from the high of 6.5286 made on July 27. If the price sustains below the intraday low, it could test the 50-day Simple Moving Average (SMA) at 6.4687.
The Moving Average Convergence Divergence (MACD) indicator trades near the midline. Any downtick in the MACD would amplify the selling opportunity toward the 6.4600 horizontal support level. A break beneath the 20-day SMA at 6.4559 would mean the 6.4400 horizontal support line for USD/CNH bears.
Alternatively, a reversal in price movement would try to test the multiple resistance formation at the psychological 6.4900 level. A daily close above the mentioned level would confirm the dominance of the bulls over the price action. Next, the market participants keep their eye on the 6.5000 horizontal resistance level followed by the high of July 28 at 6.5277.
USD/CNH additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.