USD/CNH Price Analysis: Bears attack 7.0650 after China PMI, Hong Kong updates

• USD/CNH drops to four-day low after China’s official PMIs flashed upbeat data.
• China’s passage of the Hong Kong National Security Law failed to defy the Yuan bulls.
• Bearish MACD suggests further weakness inside a three-week-old symmetrical triangle formation.

USD/CNH declines to 7.0652, down 0.17% on a day, amid the initial hours of China open on Tuesday. The pair recently weakened after China’s official PMIs rose well beyond the downbeat forecasts and prior. In doing so, the quote pays a little heed to the expected geopolitical tussle between Beijing and Washington following the passage of the Hong Kong National Security Law by the Chinese parliament.

Technically, the pair extends pullback moves from the upper line of a short-term symmetrical triangle amid bearish MACD signals. This suggests an additional downside of the quote towards the formation’s support of 7.0500.

However, any further weakness by the pair below 7.0500 might not refrain from challenging the monthly bottom near 7.0400. In doing so, June 24 low near 7.0455 might offer an intermediate halt.

Alternatively, the pair’s break of the said triangle’s resistance line, at 7.0870 now, could propel the buyers to aim for a 200-bar SMA level of 7.1030. Though, the early-month top and late-May bottoms might restrict extended rise around 7.1340/50.

USD/CNH four-hour chart

Trend: Further weakness expected