OctaFX | OctaFX Forex Broker
Open trading account

USD/CNH Price Analysis: Trapped between key MAs

  • USD/CNH is trapped between 100- and 200-day moving averages. 
  • A close above the 100-day MA would signal a continuation of the recent rally.

USD/CNH has been contained to narrow range defined by key averages since Monday. 

While the upside has been capped by the 100-day moving average (MA), the sellers have had a hard time forcing a break below the 200-day MA.

The 100- and 200-day MAs are currently located at 7.0234 and 6.9849, respectively. 

A break above the 100-day MA would signal a continuation of the rally from recent lows near 6.8450 and open the doors to 7.0865 (Dec. 3 high). That looks likely with the 14-day relative strength index reporting bullish conditions with an above-50 print.

On the other hand, a move below the 200-day MA would validate the bearish crossover (a death cross) of the 50- and 200-day MAs and shift risk in favor of a re-test of recent lows. 

At press time, the pair is trading near 7.00, having found bids close to the 200-day MA in early Asia. 

Daily chart

Trend: Neutral

Technical levels


Coronavirus to have a bigger economic impact on NZ than SARS – Westpac

Analysts at Westpac are concerned that the coronavirus is likely to have a bigger economic impact on New Zealand than SARS. Key notes Our baseline sce
Read more Previous

RBA’s Lowe: Doing what we can on unemployment, up to government on fiscal policy

More comments are crossing the wires from the Reserve Bank of Australia (RBA) Governor Lowe, as he now addresses the Q&A session following his speech.
Read more Next
Start livechat