USD/CNH drops below 200-HMA after Trump comments
- The US President Trump's comments on Huawei case and trade tensions with China are likely lifting CNH and other risky assets.
- The USD/CNH pair is currently trading well below the 200-hour MA (HMA).
Having breached the 200-HMA earlier today, the USD/CNH pair (offshore yuan exchange rate) is now trading at a session low of 6.8840 - down 0.30 percent on the day.
The Chinese yuan is being pushed higher at press time likely in response to Trump's optimistic comments on US-China trade relations and Huawei CFO arrest.
The US President Trump, while speaking to Reuters, said that he would intervene in the Huawei case if it would help achieve a trade deal with China and boost national security. He added further that trade negotiations are taking place and expressed readiness to meet China's Xi Jinping if required. He also criticized Fed's plans to raise rates next week.
Looking forward, the risky assets may continue to cheer Trump's comments. As a result, the USD/CNH pair may slide further toward 6.8668 (Oct. 11 low).
USD/CNH Technical levels
Today Last Price: 6.8846
Today Daily change: -1.8e+2 pips
Today Daily change %: -0.259%
Today Daily Open: 6.9025
Previous Daily SMA20: 6.9173
Previous Daily SMA50: 6.9247
Previous Daily SMA100: 6.8878
Previous Daily SMA200: 6.6541
Previous Daily High: 6.9228
Previous Daily Low: 6.8932
Previous Weekly High: 6.9509
Previous Weekly Low: 6.826
Previous Monthly High: 6.9808
Previous Monthly Low: 6.8525
Previous Daily Fibonacci 38.2%: 6.9045
Previous Daily Fibonacci 61.8%: 6.9115
Previous Daily Pivot Point S1: 6.8895
Previous Daily Pivot Point S2: 6.8765
Previous Daily Pivot Point S3: 6.8599
Previous Daily Pivot Point R1: 6.9192
Previous Daily Pivot Point R2: 6.9358
Previous Daily Pivot Point R3: 6.9488