USD/CNH 3 Day Up Streak Broken, in an Uptrend Over Past 30 Days; Eyes 100 and 200 Day Averages

USD/CNH Price Recap

A moment of silence, please, for the end of USD/CNH’s 3 day up streak; price ended yesterday down 137 pips (-0.19%) to finish the day at a rate of rate of 7.03012. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 4.85% from the day prior, and up 45.3% from the same day the week before. Out of the 40 instruments in the Forex asset class, USD/CNH ended up ranking 26th for the day in terms of day-over-day price change. Let’s take a look at price chart of USD/CNH.

USD/CNH Technical Analysis

Coming into today USD/CNH is now close to its 20, 50, 100 and 200 day moving averages, which may act as price barrier for the asset. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 100 day average, which is 228.3 pips away. In addition to the moving average crossover, USD/CNH’s momentum/trend on a 14 and 90 day bases may be decelerating. Volatility for USD/CNH has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. The clearest trend exists on the 30 day timeframe, which shows price moving up over that time. For additional context, note that price has gone up 6 out of the past 10 days.

The View From Around the Web

Not much commentary on USDCNH that we’re finding noteworthy here; are y’all just scared to put out an opinion? 🙂 As for the rationale, technical traders seem to be citing the appearance of a pennant technical pattern. Here’s a piece we found on that we thought you might enjoy.