USD/CNH Technical Analysis: hits lowest since Aug. 29, H&S breakdown confirmed
- The USD/CNH pair (offshore yuan exchange rate) is currently trading at 6.8103, having clocked a low of 6.8056 earlier today - a level last seen on Aug. 29.
- The minutes of the December Fed meeting released yesterday reinforced investors' expectations that the central bank could rein rate hikes, sending the US dollar lower across the board.
- The USD/CNH pair closed well below 6.8367 yesterday, confirming a head-and-shoulders breakdown. Put simply, the rally from the March 2018 low of 6.2353 has ended and the bears have likely regained control.
- The 5-, 10-, and 20-day MAs are trending south indicating a bearish setup. The 14-day relative strength index (RSI) of 35 is also biased toward the bears.
- The pair risks falling below 6.80, albeit after a minor bounce. Moreover, markets usually crowd out the weak hands before capitalizing on a major bearish or bullish move.
Trend: minor bounce likely before further losses
Today Last Price: 6.8113
Today Daily change: 24 pips
Today Daily change %: 0.0352%
Today Daily Open: 6.8089
Previous Daily SMA20: 6.8804
Previous Daily SMA50: 6.9037
Previous Daily SMA100: 6.895
Previous Daily SMA200: 6.7141
Previous Daily High: 6.8572
Previous Daily Low: 6.8073
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%: 6.8264
Previous Daily Fibonacci 61.8%: 6.8382
Previous Daily Pivot Point S1: 6.7917
Previous Daily Pivot Point S2: 6.7746
Previous Daily Pivot Point S3: 6.7418
Previous Daily Pivot Point R1: 6.8417
Previous Daily Pivot Point R2: 6.8744
Previous Daily Pivot Point R3: 6.8916