USDCNH Remain Under Pressure
Despite a rebound in the U.S. dollar, USD/CNH longer-term technical outlook remains bearish....
Share this:
On Friday, the ICE U.S. Dollar Index climbed to a 2-month high of 94.64, amid continued short covering. USD/CNH rebounded 0.6% last week, halting an 8-week decline.
This week, investors will focus on the release of China's September official Manufacturing PMI (a slight improvement to 51.3 expected), Non-manufacturing PMI (edging down to 54.7 expected) and Caixin Manufacturing PMI (flat at 53.1 expected), all due on Wednesday.
On a daily chart, USD/CNH remains on the downside despite a modest rebound. The pair has formed a bearish double-top pattern and has broken below the neckline, signaling a bearish bias. The upside potential of the recent rebound is expected to be limited by the nearest resistance at 6.9200, which is the 38.2% Fibonacci retracement of the decline started in May, and a break below the nearest support at 6.7400 might trigger a further decline to test the next support at 6.6000. Alternatively, breaking above 6.9200 would suggest the pair has stabilized and the next resistance at 7.0200 may be challenged.
Source: Gain Capital, TradingView
On Friday, the ICE U.S. Dollar Index climbed to a 2-month high of 94.64, amid continued short covering. USD/CNH rebounded 0.6% last week, halting an 8-week decline.
This week, investors will focus on the release of China's September official Manufacturing PMI (a slight improvement to 51.3 expected), Non-manufacturing PMI (edging down to 54.7 expected) and Caixin Manufacturing PMI (flat at 53.1 expected), all due on Wednesday.
On a daily chart, USD/CNH remains on the downside despite a modest rebound. The pair has formed a bearish double-top pattern and has broken below the neckline, signaling a bearish bias. The upside potential of the recent rebound is expected to be limited by the nearest resistance at 6.9200, which is the 38.2% Fibonacci retracement of the decline started in May, and a break below the nearest support at 6.7400 might trigger a further decline to test the next support at 6.6000. Alternatively, breaking above 6.9200 would suggest the pair has stabilized and the next resistance at 7.0200 may be challenged.
Source: Gain Capital, TradingView
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Silver's bullish breakout case builds as bond yields retreat
The Democratic blue wave has sent crude and Treasury yields sharply lower, improving the outlook for precious metals. With gold already breaking higher, could silver be next?
Swiss Franc Short-term Outlook: USD/CHF Selloff Nears Critical Support Ahead of NFP 11 4 2026
USD/CHF bears are closing in on critical trend support, with the next reaction likely to determine whether the October decline has further to run.
USD/CAD Forecast: Canadian Dollar Gains Ground After U.S. Midterm Elections
The trading week continues to unfold and the recovery in the Canadian dollar has once again become a relevant theme in the short term. This can be clearly seen in the recent performance of USD/CAD, which is down nearly 0.4% during the session, reflecting a consistent recovery in the CAD against the U.S. dollar.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.