USDCNH 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.
Share this:
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.
Source: Gain Capital, TradingView
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.
Source: Gain Capital, TradingView
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Euro Short-term Outlook: EUR/USD Selloff Nears Critical Yearly Support 9 23 2026
Euro has fallen seven of the past nine sessions, with stretched momentum raising the stakes as EUR/USD closes in on a major inflection zone.
GBP/USD forecast: US dollar surges as bonds implode
The US dollar continued to press higher deep into the European session, supported by the slump in the bond markets as yields broke out across the curve. Following the recent hawkish Fed rate hike, yield spreads between the US and the rest of the world has continually increased, and that motion continued today, helped in part by some forecast-beating US macro data and hawkish Fed commentary.
Australian Dollar Technical Outlook: AUD/USD Breakdown Threatens Deeper Correction 9 23 2026
AUD/USD remains under pressure after breaking key trend support, with the latest decline putting the focus on the next major downside pivot.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.