USD/CNH Price Analysis: Fades bounce off 200-HMA on firmer China inflation
|- USD/CNH recovers from intraday low, prints the first intraday loss in three.
- China CPI, PPI rose past market forecasts in February.
- Weekly symmetrical triangle restricts nearby moves, Momentum line hints at further weakness.
USD/CNH justifies firmer inflation data from China as sellers attack the 200-HMA during Wednesday’s Asian session trading. In doing so, the Chinese offshore currency (CNH) pair snaps a two-day uptrend even as it rises to 6.3215 by the press time.
That said, China’s Consumer Price Index (CPI) rose past 0.8% forecast to reprint 0.9% prior figures while the Producer Price Index (PPI) crossed 8.7% market consensus with 8.8% YoY level, versus 9.1% previous readouts.
The pair’s latest rebound from the 200-HMA level of 6.3200 needs validation from an immediate descending trend line, around 6.3245 at the latest, before challenging the upper line of a weekly symmetrical triangle, at 6.3295 by the press time.
On the contrary, a downside break of the 6.3200 HMA support will direct the quote towards the stated triangle’s support line of 6.3130.
Overall, USD/CNH remains sidelined between 6.3300 and the flashed multi-month low flashed in February around 6.3058.
USD/CNH: Hourly chart
Trend: Further weakness expected
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