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USD/CNH Price Analysis: Looks South After Tuesday’s Inverted Hammer


fxfarmerashik

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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

 
Image for post

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
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