USD/CNH advances above 7.1950 amid the overbought condition, US CPI, FOMC meeting eyed – Crypto News – Crypto News
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USD/CNH retreats toward 7.2700 on China upbeat economic data, reduces RRR USD/CNH retreats toward 7.2700 on China upbeat economic data, reduces RRR

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USD/CNH advances above 7.1950 amid the overbought condition, US CPI, FOMC meeting eyed – Crypto News

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  • USD/CNH gains ground near 7.1960 on the cautious mood and downbeat Chinese data.
  • The pair holds above the 50- and 100-hour EMA; RSI indicator stands in the overbought condition.
  • The immediate resistance level is seen at 7.2100; 7.1776 acts as an initial support level for the pair.

The USD/CNH pair holds positive ground around 7.1960 during the Asian session on Monday. The cautious mood in the market and the weaker-than-expected Chinese data lends some support to the pair. Investors await the US inflation data due on Tuesday ahead of the Federal Open Market Committee (FOMC) rate decision on Wednesday for fresh impetus. The markets anticipate the US central bank to hold the rate steady at its December meeting.

Furthermore, the National Bureau of Statistics of China revealed on Saturday that China’s Consumer Price Index (CPI) dropped 0.5% YoY in November from October’s reading 0.2% decline. This figure came in worse than the expectation of a 0.2% decrease. Meanwhile, the nation’s Producer Price Index (PPI) fell 3.0% YoY in November versus a 2.6% decline prior, below the market consensus of a 2.8% decline in the same month.

According to the daily chart, USD/CNH holds above the 50- and 100-hour Exponential Moving Averages (EMAs), which means the path of least resistance for the pair is to the upside. The upward momentum is supported by the Relative Strength Index (RSI), which stands in bullish territory above 50. However, the overbought condition indicates that further consolidation cannot be ruled out before positioning for any near-term USD/CNH appreciation.

The immediate resistance level for USD/CNH is seen near a low of November 17 at 7.2100. Further north, the next upside barrier is located at a high of November 20 at 7.2248, en route to a low of November 15 at 7.2384, and finally a low of November 16 at 7.2427.

On the flip side, the 100-hour EMA at 7.1776 acts as an initial support level for the pair. A break below the latter will see a drop to the 50-hour EMA at 7.1662. The additional downside filter to watch is the lower limit of the Bollinger Band at 7.1503, followed by a low of November 28 at 7.1424.

USD/CNH daily chart

 

 

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