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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

USD/CNH bounces off intraday low of 6.9005, marks a two-day losing streak. Sluggish momentum indicators challenge bullish chart formation. 200-bar SMA adds to the upside barriers, the yearly bottom gains the bears’ attention. USD/CNH picks up bids near 6.9080 amid the initial trading session on Tuesday. Even if the cross drops for the second day, a falling wedge formation on the four-hour chart (4H) keeps the bulls hopeful. Other than the pair’s latest weakness, downbeat conditions of RSI and MACD also challenges the buyers. Even so, a sustained break of 6.9180 resistance will theoretically confirm the quote’s run-up towards breaking the monthly top surrounding 7.000 round figures. During a north-run, the 200-bar SMA level near 6.9700 will act as an intermediate halt whereas the late-July top surrounding 7.0300 could the optimists afterward. Meanwhile, PipsWin have reportedly stated that the seven-month low flashed, on Friday, around 6.8930 and the support line of the said bullish formation near 6.8910 challenges the sellers targeting the yearly bottom near 6.8455. USD/CNH four-hour chart USD/CNH four-hour chart Trend: Pullback expected Additional Important Levels Today last price 6.9072 Today Daily Change -0.0050 Today Daily Change % -0.07% Today daily open 6.9122 Trends Daily SMA20 6.9519 Daily SMA50 7.0023 Daily SMA100 7.0514 Daily SMA200 7.0263