USD/CNH Price Recap
USD/CNH is up 439 pips (0.62%) since yesterday (with its current price near 7.07152), marking the 2nd day in a row it has gone up. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 34.08% from the day before — and down 36.51% from the same day the week before. Relative to other instruments in the Forex asset class, USD/CNH ranked 14th yesterday in terms of percentage price change. Below is a 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 averages, located at 6.9933, 6.9679, 6.9888 and 7.004 respectively, and thus may be at a key juncture along those timeframes. 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 200 day average, which is 675.2 pips away. It should be noted, though, the 100 day simple moving average turned upwards, which may be a bullish sign. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. Also of note is that on a 30 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. For additional context, note that price has gone up 7 out of the past 10 days.
A final note on correlations: over the past 7 days, USD/CNH has been most correlated with USD/SEK — not terribly surprising, given that USD is in both currency pairs. As for pairs with the least correlation, that belongs to NZD/CHF over the past 7 days, but AUD/USD over a two week period.
The View From Around the Web
Not much in terms quality buy/sell signals we’re seeing for USDCNH; just 1 sell signals and 3 buy signals. This imputes a buy/sell ratio of 3, which is bullish. As for the rationale, technical traders seem to be citing the appearance of pennant and relative strength index technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
USDCNH broke downtrend line ,based on key level and HVN around 7.03000price formed pennant bullish patternprice above SMA 100RSI in uptrend line MACD shows bearish momentum weaknessprice forming DEEP CRAB harmonic pattern so its expect bullish movement to supply zone around 7.17500