• Thu. Jun 13th, 2024

USD/CNH Price Analysis: Advances to over one-week high, around 7.3100 ahead of FOMC

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  • USD/CNH climbs to over a one-week high during the Asian session on Wednesday.
  • The uptick lacks follow-through as investors keenly await the FOMC rate decision.
  • A break below the 50-day SMA is needed to support prospects for a meaningful fall.

The USD/CNH pair edges higher for the third successive day on Wednesday and climbs to over a one-week high, around the 7.3125 region during the Asian session. The technical setup, meanwhile, seems tilted in favour of bullish traders and supports prospects for an extension of the recent bounce from the 7.2595 region, or a nearly two-week low touched last Friday.

The constructive outlook is reinforced by the fact that the USD/CNH pair is holding comfortably above technically significant 50-day, 100-day and 200-day Simple Moving Averages (SMAs). That said, oscillators on the daily chart are yet to confirm a positive bias and warrant some caution before placing aggressive bullish bets ahead of the highly-anticipated FOMC monetary policy decision, due to be announced later during the US session.

In the meantime, strength beyond the 7.310 level might have set the stage for additional gains, through any subsequent move up is likely to confront resistance near the 7.3360-7.3365 region en route to the 7.3495 zone. Some follow-through buying beyond the 7.3500 level should allow the USD/CNH pair to accelerate the momentum further towards challenging a multi-year peak, around the 7.3680-7.3685 region touched on September 8.

A sustained strength beyond the latter will be seen as a fresh trigger for bulls and pave the way for an extension of the USD/CNH pair’s well-established uptrend witnessed since the beginning of this year.

On the flip side, the 7.2985-7.2885 horizontal support should protect the immediate downside ahead of the 7.2800 round figure and last Friday’s low, around the 7.2595 zone. This is closely followed by the 50-day SMA, currently near the 7.2435 zone, which if cleared decisively could prompt aggressive technical selling and drag the USD/CNH pair below the 7.2390 region, or the monthly low, towards testing the next relevant support near the 7.2135-7.2130 area.

USD/CNH daily chart

fxsoriginal

Technical levels to watch

USD/CNH

Overview
Today last price 7.3078
Today Daily Change 0.0042
Today Daily Change % 0.06
Today daily open 7.3036
Trends
Daily SMA20 7.2969
Daily SMA50 7.2479
Daily SMA100 7.1804
Daily SMA200 7.0282
Levels
Previous Daily High 7.3078
Previous Daily Low 7.2886
Previous Weekly High 7.3652
Previous Weekly Low 7.2596
Previous Monthly High 7.3496
Previous Monthly Low 7.1452
Daily Fibonacci 38.2% 7.3004
Daily Fibonacci 61.8% 7.2959
Daily Pivot Point S1 7.2922
Daily Pivot Point S2 7.2808
Daily Pivot Point S3 7.273
Daily Pivot Point R1 7.3114
Daily Pivot Point R2 7.3192
Daily Pivot Point R3 7.3306

 

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