USDCNH breaks below Thursday's low
US Dollar/Chinese Yuan Renminbi (USDCNH) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
USDCNH finished the month -1.15% lower at 6.9896 after losing 130 pips (-0.19%) today on high volume. Closing below Thursday's low at 6.9917, the pair confirmed its breakout through the prior session low after trading up to 167 pips below it intraday.
Daily Candlestick Chart (USDCNH as at Jul 31, 2020):
Friday's trading range has been 293 pips (0.42%), that's slightly above the last trading month's daily average range of 273 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDCNH.
Prices broke below the key technical support level at 6.9965 (now R1), which is likely to act as resistance going forward. The last time this happened on July 15th, USDCNH actually gained 0.19% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for USD/CNH. Out of 267 times, USDCNH closed lower 50.94% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more