The Chinese Yuan pair appeared to drop today after touching the 7.0670 top mark two days back. However, stable 7.0236 Fibonacci Retracement was providing some significant support, disallowing pair’s downside. Notably, the 100-day SMA had crossed above the 200-day SMA, supplying extra ammunition to the USD/CNY bulls. Despite that, the over-sold RSI that had knocked 81 benchmark last week had already started playing its role in dragging down the pair. Quite notably, the MACD green histograms kept pointing to the north side, giving hopes for the bulls. On the lower side, a robust slanting ascending trend line stood as the firm support, preventing any potential losses.
Meantime, the Chinese economic docket displayed quite a few disappointing economic events, weakening the investor sentiment. The July YoY Retail Sales recorded 7.6% over 8.6% forecasts. Also, the July YoY Industrial Production came around 1% below the market estimation of around 5.8%. Additionally, the July YoY YTD Fixed Asset Investment published 5.7% in comparison to the consensus estimate of 5.8%.
Despite positive AUD-specific data, the Aussie pair was heading south to close the day on a negative note. After pausing a strong downward rally on August 5, the AUD/USD pair appeared to take halt near 0.6749 level. Anyhow, bulls seemed to remain muted since the last few trading sessions. Meanwhile, the MACD line and the signal line of the MACD technical indicator continued to stay below the zero line, sustaining a dominant downtrend. Strong resistance conflux consisting of the 50-day, 100-day, and 200-day SMA remained stalled on the upper side, restricting the entry of the bulls.
Anyhow, the Parabolic SAR had recently come below the trading pair, signaling for a near-term trend reversal. On the event side, the August Westpac Consumer Confidence reported 3.6% over the previous -4.1%. Also, at around 01:30 GMT, the Q2 Wage Price Index (WPI) came out, showing an overall mixed report this time. The QoQ WPI rose 0.1% over the market hopes while the YoY figures remained stuck at 2.3% the same as the last statistics.
Notably, the market had expected the German GDP figures to record 0.1%, 0.6% lower than the previous 0.7%. Anyhow, the actual reports came around 0.4%, shocking the street analysts. Meanwhile, the France July Consumer Price Index computed as per EU norm remained in-line with the previously recorded figures. Today, the Relative Strength Index (RSI) continued to lose ground, heading south, targeting the 40 mark. On the upper side, strong resistances remained stalled at 1.1285, 1.1340, and 1.1404 levels. On the flip side, 1.1131 and 1.1104 support handles ensured to act as a solid shield, limiting daily losses.
Even the July MoM Core CPI recorded 0.0% over -0.1% forecasts. Also, both the Producer Price Index (PPI) – Input and Output, stood well above the consensus estimates. However, ignoring such positive economic releases, the Pound pair continued to catch the downward path. On the upside, the red Ichimoku Clouds kept hovering, acting as a stable resistance region.
This article was originally posted on FX Empire
More From FXEMPIRE:
- AUD/USD Forex Technical Analysis – Straddling Short-Term Pivot at .6749
- Crude Oil Price Forecast – Crude oil markets get hammered
- Forex Daily Recap – USD/CNY Bears Stuck at 7.0236 Fib Level
- Natural Gas Price Prediction – Prices Whipsaw Ahead of Thursday’s Inventory Report
- Gold Price Prediction – Gold Rallies as US Yield Curve Inverts
- NSD/USD Forex Technical Analysis – August 15, 2019 Forecast