USDCNH Found Support at 7.0420 Area – Will Strike Higher?


USDCNH has successfully retraced 50 percent of the recent bullish trend and bounce higher from the 7.0420 area. USDCNH found support at 7.0420 area, will strike higher? What are the charts and technical indicators are saying? Read more to find further insights into today’s USDCNH Technical Analysis. 

April 15, 2020 | AtoZ Markets – USDCNH is currently trading around 7.0620 after the price found support at 7.0420. The pair has been quite volatile and corrective but successfully retrace down. As per the current price action, USDCNH has the potential to climb higher in the coming days.

The U.S. Dollar rose today during the Asian session as the U.S. Federal Reserve announced a massive new lending program. Moreover, U.S. retail sales and industrial production figures report going to publish today. The figure will reveal the economic damage caused by the Coronavirus pandemic instigating lockdown. Moreover, U.S. President Donald Trump said overnight that he is planning to reopen the country by May 1 as daily facilities fall. Besides, investors are careful as the President’s top contagious diseases advisor Anthony Fauci warned that the deadline was overly optimistic.

On the other hand, Chinese trade data improved, but COVID-19 recession fears are bothering the Chinese economy. Moreover, according to the General Administration of Customer data showed on Tuesday that China’s exports fell 6.6% in March a year ago, while the total imports slipped 0.9% in the same month. Besides, China’s March trade balance was $19.9 billion, as compared with the $18.55 billion that economists polled by Reuters had expected.

USDCNH Found Support – Can Push Higher?

The pair is currently residing near the 7.0620 area and trying to push higher. USDCNH found support at the Kijun line on the daily chart, which is currently residing above the 7.0420 area.

USDCNH Found Support at 7.0420 Area - Will Strike Higher?

Image: USDCNH 4 Hour Chart

According to the 4-hour chart, the pair is currently residing near the 7.0620 area and trying to strike higher. USDCNH tested the 7.0420 area several times and broke above the dynamic levels. As per the current price action, if the price can take over the Kumo Cloud, the bulls may push the price higher towards 7.1630 area in the coming days.

Furthermore, the dynamic level of 20 EMA is currently residing below the price, along with the Kijun line and the Tenkan line. The dynamic levels may work as strong support in the process. Besides, the MACD lines are residing below the 0.00 level but continuously rising upward.

Read More – Will USDJPY Current Bearish Trend Reach at 105.00?

Will USDCNH Continue Preceding Trend?

According to the Daily chart, the pair is currently trading around 7.0620 area after USDCNH found support at 1.0420. As per the current price action context, if the price climbs further and has a daily close above the dynamic level, the bulls may push the price higher towards 7.1630 area. Alternatively, if the price breaks below 7.0420 area with a daily close, the bears may push the price lower towards the uptrend line around 7.0100 area.

USDCNH Found Support at 7.0420 Area - Will Strike Higher?

Image: USDCNH Daily Chart

Moreover, the dynamic level of 20 EMA is currently residing near the price, which may act as a strong support if the price breaks above it. In contrast, if the price rejects from the dynamic level, the bears may push the price further in the days ahead.

To conclude, USDCNH has the potential to climb higher despite recent bearish pressure in place. A daily impulsive close above 7.05 required to continue upside.

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