USD/CNH Price Analysis: Extends pullback from weekly resistance below 7.3200 even as China data disappoints

USD/CNH renews intraday low, stays defensive after reversing from short-term key resistance line.
China’s Caixin Services PMI dropped to five-month low.
Key HMAs, RSI conditions suggest a bumpy road for the bears.

Anil Panchal FXStreet

USD/CNH ticks down to refresh intraday low near 7.3160 after China reported downbeat services activity data during early Thursday.

In doing so, the offshore Chinese currency (CNH) pair consolidates the Fed-inspired gains but struggles to extend the late Wednesday’s pullback from a one-week-old descending resistance line.

That said, China’s Caixin/S&P Global Services PMI for October dropped to the lowest level in five months while flashing 48.4 figure versus 49.3 prior.

Despite the quote’s latest inaction, the bearish MACD signals and the U-turn from a short-term key resistance line direct USD/CNH sellers toward the 50-HMA and 100-HMA support levels, respectively near 7.3050 and 7.2980.

However, an upward-sloping support line from Friday, near 7.2840, joins the ascending support line on RSI (14) to challenge the pair bears afterward.

Alternatively, recovery moves need to cross the aforementioned resistance line, close to 7.3485, to convince USD/CNH buyers.

Following that, a run-up towards the all-time high marked in October around 7.3750 can’t be ruled out.

To sum up, USD/CNH justifies short-term bearish technical signals despite weaker fundamentals to support sellers. Though, the downside room appears limited.

USD/CNH: Hourly chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	7.3186
Today Daily Change	-0.0250
Today Daily Change %	-0.34%
Today daily open	7.3436

Trends
Daily SMA20	7.2321
Daily SMA50	7.0984
Daily SMA100	6.9225
Daily SMA200	6.707

Levels
Previous Daily High	7.3486
Previous Daily Low	7.2608
Previous Weekly High	7.3748
Previous Weekly Low	7.1658
Previous Monthly High	7.3748
Previous Monthly Low	7.0126
Daily Fibonacci 38.2%	7.315
Daily Fibonacci 61.8%	7.2944
Daily Pivot Point S1	7.2868
Daily Pivot Point S2	7.23
Daily Pivot Point S3	7.1991
Daily Pivot Point R1	7.3745
Daily Pivot Point R2	7.4054
Daily Pivot Point R3	7.4622

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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