USD/CNH: strong down trend holds
Medion Jim December 16, 2020 4:04 AM
USD/CNH fell 9% from the top of 2020 as investors expected the recovery of the economy after the pandemic.
USD/CNH fell 9% from the top of 2020 as investors expected the recovery of the economy after the pandemic. Investors sold the safe-haven assets dollars to other assets. In addition, the strong China economic data also support the CNH.
On the economic front, China's industrial production rose 7.0% on year in November, as expected, while retail sales grew 5% on year,as expected, according to the government. China's economy shows a great recovery after the outbreak of COVID-19.
On a daily chart, USD/CNH is under pressure below both declining 20-day and 50-day moving averages. The relative strength index is capped by a declining trend line. Currently, the pair is near the 52-week low, suggesting the strong downside momentum for the prices. The bearish readers could set the resistance level at 6.6600, while resistance levels would be located at 6.4400 and 6.3200.
Source: GAIN Capital,TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.