USD/CNH: falling down

USD/CNH: falling down

2020-07-06 • Updated

The pair has broken down two strong supports. What’s next?

Fundamentals

The US dollar is loosening against the Chinese yuan. There are some obvious reasons for that movement. The first reason is the weak US dollar as the USA is suffering from the record resurgence in new cases. Investors are questioning its future economic recovery. The second reason is that, unlike the USA, China has just few new cases every day. Moreover, its last economic data was really encouraging. For instance, this Friday the Chinese Services PMI bet all estimates. It turned out 58.4, while the forecast was 53.8. That was a really good sign for the fast and sustained Chinese economic recovery, that pushed the CNH upward. However, Sino-American trade wars and coronavirus fears may weigh on USD/CNH in the future. Check out the US PMI at 17:00 MT time, it may change the whole market sentiment! If the data turns out better than the forecast, the USD can rise, otherwise-fall.

Technical tips

The Chinese yuan has been gaining for a fifth day straight. It managed to cross two strong support lines: the first one was at the 7.0525 level, that it has touched twice already, and the second one at the 200-day moving average at 7.0450. It surprised most analysts as the pair was trading in a range between 7.0920 and 7.0525 for quite a long time. Therefore, nobody expected that it would escape it today. USD/CNH will meet the next support at the low of March 13 at 7.0200. If it breaks it down, it may fall even deeper to 6.9650. Anyway, keep an eye on resistance levels at the 7.0920 and 7.100. Most analysts stay for selling USD/CNH before the US PMI report. However, after it, you should trade according to the report outcome. Also, monitor where the price will close today. If it closes below the support level at 7.0200, it will move down further.

USDCNHDaily.png

Check the economic calendar

LOG IN

Similar

Oil Market Outlook
Oil Market Outlook

Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.

China’s rebound and energy prices
China’s rebound and energy prices

China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?

What Can Drive Oil below $90 a Barrel?
What Can Drive Oil below $90 a Barrel?

The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.

Latest news

The Oil Market in the Month of June
The Oil Market in the Month of June

Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.

Gold’s Next Move Could Be Huge!
Gold’s Next Move Could Be Huge!

Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.

What to Trade in June
What to Trade in June

Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera