USD/CNH Price Analysis: Drops below 200-HMA to refresh weekly low

• USD/CNH stretches Wednesday’s losses as sellers attack one-week bottom.
• 61.8% Fibonacci retracement can probe bears, a bumpy road ahead for the bulls.

USD/CNH stands on the slippery ground while taking offers to 6.3795, down 0.12% intraday, during Thursday’s Asian session. In doing so, the pair not only refreshes intraday low but also attacks the last week’s bottom while declining for the second consecutive day.

Bearish MACD signals and a sustained downside break of 200-HMA offer extra catalysts in favor of the AUD/USD sellers.

However, 61.8% Fibonacci retracement of June 01-04 upside, around 6.3795, not to forget previous Wednesday’s low near 6.3769, test further downside of the cross-currency pair.

In a case where USD/CNH bears keep reins below 6.3769, odds of witnessing a fresh low beneath the recent one near 6.3600 can’t be ruled out.

Alternatively, an upside clearance of 200-HMA level of 6.3865 needs to cross the 6.3900 round figures before attacking a downward sloping trend line from last Friday, near 6.3975.

The 6.4000 psychological magnet and the weekly top surrounding 6.4020 are extra hurdles for the USD/CNH buyers to watch.

USD/CNH hourly chart

Trend: Further weakness expected