USDCNH Bullish rally may continue higher above 7.0580 area. After bouncing higher from 6.9020, Bulls pushed the price higher impulsively. Let’s check USDCNH Technical Analysis for more levels and insights.
March 25, 2020 | AtoZ Markets – USDCNH is currently trading around 7.1100 area and trying to recover higher. After an extended period of Bullish momentum, the price retrace down at 7.0580 area recently, but the Bullish momentum may sustain further.
The USD extended its gains today morning during the Asian session. The Asian stock market got a boost after the U.S. Senate passed a $2 trillion stimulus package. Still, the USD remained as a safe-haven for the investors while the number of Coronavirus cases are continuously rising. Moreover, The U.S. Dollar Index, which tracks the USD against other six currencies, slid 0.55% to 101.690 by Asian session.
On the other hand, the world’s second-largest economy China was the first to fights with the COVID-19 after it spread in late December, 2019. Helge Berger, China mission chief and assistant director in the Asia and Pacific department at the International Monetary Fund, said, ” While it’s true the crisis isn’t over for China, (there are) lessons that can be learned from China.” Moreover, Helge Berger also added, “They also demonstrate that important policymakers have to be ready for what is an unavoidable slowdown in growth. The economic fallout from the virus is going to be severe.”
USDCNH Bullish Rally May Continue Higher
USDCNH is currently residing around 7.1100 area while recovering higher. The Bulls are quite impulsive and non-volatile while being carried by 20 EMA along the way.
Image: USDCNH 4 Hour Chart
According to the 4-hour chart, the price is currently trading around 7.1100 area after the price recently broke above the dynamic level 20 EMA. USDCNH successfully maintained to sustain above 7.0580 area after several downturns in the process. As per the current price action, USDCNH Bullish rally may continue further towards 7.20 area as it remains above 7.05 area with a daily close.
Furthermore, the dynamic level of 20 EMA is currently residing below the current price. It may now become support and carry the price higher as confluence to the preceding trend. On the other hand, the MACD lines are residing above 0.00 level and may have a Bullish cross over while finding a floor near 0.00 level.
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USDCNH Bulls to Remain Consistent
According to the Daily chart, USDCNH is quite impulsive with the recent Bullish momentum. The price successfully retraced lower towards 7.0580 area after it broke above the resistance. As per the current scenario, the Bulls may sustain the impulsive momentum and USDCNH Bullish rally may continue higher towards 7.20 area. Alternatively, if the price break below 7.0580 area with a daily close, the Bears may take over the market and push the price lower towards 6.9020 area, which is quite unlikely as per current price action.
Image: USDCNH Daily Chart
the MACD lines are currently residing above the 0.00 level having Bullish Convergence to support further up move. Additionally, the RSI indicator line is currently residing near the overbought level 80 and sloping lower, which indicates Bulls may turn weak while pushing higher towards 7.20 area.
To conclude, USDCNH Bullish trend is still quite intact and may continue to push higher. A daily close above or below 7.0580 area will decide the further upcoming momentum.