USD/CNH formed an inverted hammer candle on Tuesday, signaling an end of the bounce from the Oct. 9 low of 6.6787.
The broader trend remains bearish, as evidenced by the trendline falling from May 27 and July 24 highs, the descending 5- and 10-week simple moving averages, and the weekly chart double top breakdown.
As such, the pair could revisit recent lows below 6.68 and may extend the drop to 6.60 in the near-term. Fundamentals also favor continued declines in the currency pair as per TopAsiaFX.
The People’s Bank of China recently said it wouldn’t employ aggressive monetary policies adopted by the western central banks. Further, according to IMF’s Chief Economist Gita Gopinath, China will be the only economy to report positive growth in 2020.
Daily Chart
Trend: Bearish
Technical levels
Today last price 6.7354
Today daily change -0.0050
Today daily change % -0.07
Today daily open 6.7404
Trends
Daily SMA20 6.7683
Daily SMA50 6.8393
Daily SMA100 6.9443
Daily SMA200 6.9894