- USD/CNH picks up bids to extend early week rebound from the key Fibonacci retracement level.
- Convergence of 100-DMA, previous support line from October challenges buyers.
- MACD, RSI conditions suggest further hardships for bulls.
USD/CNH prints a two-day uptrend around 6.9870 while extending the week-start rebound from the lowest levels in three months.
That said, the offshore Chinese Yuan (CNH) pair prints mild gains while defending the bounce off the 61.8% Fibonacci retracement level of the August-October upside.
Although the recovery moves from the key Fibonacci retracement level, also known as the golden ratio, teases the USD/CNH bulls, the downbeat RSI (14) and bearish MACD signals challenge the quote’s further upside.
Also raising doubts on the USD/CNH run-up is the joint of the 100-DMA and the support-turned-resistance line from October, near 7.0265-70.
It’s worth noting that the pair’s advances past 7.0270 need validation from the 50% Fibonacci retracement level surrounding 7.0465 before giving control to the buyers.
In that case, a gradual run-up towards the late October swing low near 7.1660 can’t be ruled out.
Alternatively, a daily closing below the 61.8% Fibonacci retracement level of 6.9688 could quickly drag the USD/CNH prices to the latest trough surrounding 6.9300.
Following that, the lows marked during mid-September, close to 6.9100, acts as the last defense of the USD/CNH bulls.
USD/CNH: Daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD stays bullish despite Powell hawkish tilt, Aussie PMI eyed
The Aussie Dollar ended September on a higher note, posting gains of over 0.22% against the Greenback, even though Federal Reserve Chairman Jerome Powell was slightly ‘hawkish’ in a speech. The AUD/USD trades around 0.6913 after bouncing off daily lows of 0.6894.
EUR/USD faces a tough barrier around 1.1200
EUR/USD faded the initial uptick to levels just above 1.1200 the figure on Monday, eventually surrendering those gains in response to the strong bounce in the US Dollar ahead of key US data releases later in the week.
Gold dims, falls below $2,650 as US Dollar bounces back
Gold price retreats for the second consecutive day amid month-end flows favoring the Greenback despite falling US Treasury yields. Nevertheless, the golden metal is set to register monthly gains of over 5.40% in September, its best month since March 2024, when Bullion prices rose over 9%.
Ethereum could decline to $2,395 if key support level fails to hold
Ethereum is down 2% on Monday, struggling around the $2,595 key support level after the ETH Foundation continued its selling spree. However, the slow price movement in the past few hours isn't reflective of the rising inflows across US spot Ethereum ETFs.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.