Market news

10 November 2021

USD/CNH Price Analysis: Off 61.8% Fibo. after strong China CPI, PPI

  • USD/CNH takes the bids to refresh intraday high following China’s key inflation data for October.
  • Bearish MACD signals, sustained trading below weekly resistance line and 200-HMA favor sellers.

USD/CNH rises to $6.3920 following an upbeat China inflation release on early Wednesday. In doing so, the offshore Chinese currency (CNH) pair rebounds from the 61.8% Fibonacci retracement (Fibo.) of October 25-29 upside.

However, the cross-currency pair remains below the weekly resistance line and 200-HMA amid bearish MACD signals, which in turn suggests brighter hopes for the sellers.

That being said, the quote’s pullback may need validation from the stated key Fibo. level of $6.3885 before attacking the latest swing lows near $6.3865.

Following that, the $6.3800 threshold and the yearly low surrounding $6.3685 should lure the USD/CNH sellers.

Meanwhile, an upside clearance of the stated trend line hurdle and the 200-HMA, respectively around $6.3935 and $6.3965, should recall the pair buyers.

Even so, the $6.4000 round figure and $6.4060 may test the USD/CNH bulls before directing them to the monthly peak of $6.4094.

USD/CNH: Hourly chart

Trend: Bearish

 

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