USDCNH trades to lowest level since April/May 2019

Technical Analysis

Author: Greg Michalowski | usdcnh

The USDCNH trades below the 200 week MA for the first time since June 2018

The USDCNH has moved lower in trading today helped by better retail sales and industrial production out of the China.  

The move has taken the price to the lowest level since April/May 2019 and in the process has moved below its 200 week MA at 6.81027.  The fall below the 200 week MA was the first break below the MA level since June 2018 (see green line in the chart below).

The USDCNH trades below the 200 week MA for the first time since June 2018
The price has moved to a low today of 6.76552. That stalled between a price gap from April/May 2019 between 6.75976 to 6.76778. A move below that area would be more bearish. There has been a bounce off that area. 

Drilling to the 4 hour chart below, the low price also tested a lower trendline at 6.7683 (currently and moving lower).   The support buyers near that trend line level correspond with the support from the weekly chart gap.  Traders can lean against the support levels with risk defined and limited.  

USDCNH  tests trend line on the 4 hour chart


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