USD/CNH technical analysis: Rally stalls near 78.6% Fib

Short-term overbought conditions are likely capping upside in USD/CNH at key Fib hurdle of 6.9140.
A temporary pullback to 6.85 cannot be ruled out.

Omkar Godbole FXStreet Contributor

USD/CNH is currently trading at 6.8927, representing a 0.20% drop on the day, having struggled to find acceptance above 6.9137 (78.6% Fibonacci retracement of the drop from 6.98 to 6.6699).

The failure to scale the key Fibonacci hurdle could be associated with the overbought conditions reported by the 14-day relative strength index (RSI).

The pullback could be extended further to the ascending (bullish) 5-week moving average (MA), currently at 6.8582. The outlook, however, will remain bullish as long as the pair is holding above the 10-day MA.

On the higher side, key resistance is seen at 6.9242 (Dec. 21 high). A violation there would expose 6.95.

Daily chart

Trend: Bullish

1. R3 7.0152
2. R2 6.9669
3. R1 6.9395
PP 6.8912
1. S1 6.8638
2. S2 6.8154
3. S3 6.788

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.