Thu, Oct 21, 2021 @ 18:59 GMT
HomeContributorsTechnical AnalysisUSD/CNH: Bearish Run Shows No Signs Of Stopping Yet

USD/CNH: Bearish Run Shows No Signs Of Stopping Yet

USD/CNH has dropped 1.4% so far in October and is on track for a fifth straight monthly decline. The strength in Chinese yuan is reinforced by the contrast in coronavirus situation in China and the rest of the world. While the Chinese economic activity is gradually returning to normal, there is a resurgence of new Covid-19 cases in Europe and the US, and some European countries are reimposing lockdowns.

Meanwhile, China’s official PMIs for October will be released on Saturday (October 31), which are expected to be broadly unchanged at recent high. Caixin China Manufacturing PMI will be reported next Monday (November 2), which is expected to be down slightly to 52.8.

From a technical point of view, USD/CNH is extending its bearish run as shown on the daily chart. Previously, it has formed a double-top pattern, with the neckline broken. The level at 6.8500 maybe consider as the nearest resistance, while the 1st and 2nd support are expected to be located at 6.6300 and 6.4900.

Forex.com
DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Featured Analysis

Learn Forex Trading