USD/CNH returned below 7.00

Author: FBS | Category: News

What's next for the Chinese yuan

What's next for the Chinese yuan

USD/CNH has been steadily declining since the start of October on hopes that the United States and China would take steps towards some kind of a trade deal. As a result, the pair closed below the key level of 7.00 for the first time since early August. 

This level together with 7.0304 (100-day MA) will now act as resistance. As long as the price is below it, we'll see a top at the market. Only the clear sign that there will be no deal in the upcoming weeks will push USD/CNH above 7.03 and to 7.0923 (50-day MA). 

On the downside, support is located at 6.95. Around it, there's the line connecting 2016 and 2018 highs. The decline below this support will open the way down to 6.9102 (200-day MA). 

CNH

This post is written and submitted by FBS Markets for informational purposes only. In no way shall it be interpreted or construed to create any warranties of any kind, including an offer to buy or sell any currencies or other instruments. 

The views and ideas shared in this article are deemed reliable and based on the most up-to-date and trustworthy sources. However, the company does not take any responsibility for accuracy and completeness of the information, and the views expressed in the article may be subject to change without prior notice. 


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