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USD/CNH Technical Analysis: Break below 100-day EMA would bolster the bearish setup

The USD/CNH pair could suffer deeper losses if the immediate support at 6.8857 is breached, technical charts indicate.

Daily chart

  • As seen above, the pair suffered an ascending triangle breakdown last week, signaling a continuation of the sell-off from the Nov. 30 high of 6.9564.
  • The 5- and 10-day exponential moving averages (EMAs) are trending south, indicating a bearish setup.
  • Further, the falling channel indicates the bears are in a commanding position.

All-in-all, the path of least resistance is on the downside. As a result, the 100-day EMA support of 6.8857 could be breached soon. Moreover, that would only bolster the already bearish technical setup, opening doors for 6.8043 (23.6% Fib R of March 2018 low/November high).

A falling channel breakout, if confirmed, would signal a bullish reversal.

Trend: Bearish

USD/CNH

Overview:
    Today Last Price: 6.8623
    Today Daily change: -47 pips
    Today Daily change %: -0.0684%
    Today Daily Open: 6.867
Trends:
    Previous Daily SMA20: 6.8893
    Previous Daily SMA50: 6.9119
    Previous Daily SMA100: 6.8951
    Previous Daily SMA200: 6.7056
Levels:
    Previous Daily High: 6.8838
    Previous Daily Low: 6.864
    Previous Weekly High: 6.8947
    Previous Weekly Low: 6.8594
    Previous Monthly High: 6.9509
    Previous Monthly Low: 6.826
    Previous Daily Fibonacci 38.2%: 6.8716
    Previous Daily Fibonacci 61.8%: 6.8762
    Previous Daily Pivot Point S1: 6.8594
    Previous Daily Pivot Point S2: 6.8518
    Previous Daily Pivot Point S3: 6.8396
    Previous Daily Pivot Point R1: 6.8792
    Previous Daily Pivot Point R2: 6.8914
    Previous Daily Pivot Point R3: 6.899

 

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