- The USD/CNH is currently trading at 6.9044, having clocked a low of 6.8842 earlier today.
- The pair printed daily lows below the trendline connecting the Aug. 27 low and Sept. 21 low on Friday but closed the day well above the diagonal support lined. The recovery from 6.8842 to 6.9044 seen today also kept the support line intact.
- So, it seems safe to say that bears have like run dry. As a result, a strong bounce to 10-day EMA of 6.9316 could be in the offing.
- Chinese stocks are down 0.40 percent in early trade. China services PMI for October came in at 50.8, missing the estimated print of 52.8 by a wide margin, indicating a short deceleration in the service sector activity. The disappointing data may further strengthen the bid tone around the USD/CNH pair.
Daily Chart
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