Earlier today, USD/CNH is holding down at 7.2970 as it approaches a one-month-old support line. As a result, the offshore Chinese Yuan (CNH) pair reverses the previous day's corrective rebound as the market consolidates ahead of today's US PMIs, fueled by China-induced cautious optimism. Following that, the 50-DMA support of 7.2170 serves as the last line …
Earlier today, USD/CNH is holding down at 7.2970 as it approaches a one-month-old support line. As a result, the offshore Chinese Yuan (CNH) pair reverses the previous day’s corrective rebound as the market consolidates ahead of today’s US PMIs, fueled by China-induced cautious optimism.
Following that, the 50-DMA support of 7.2170 serves as the last line of defense for USD/CNH buyers before sending the quotation to the 61.8% Fibonacci retracement of the October 2022 to January 2023 downturn, which is located near 7.1170.
Firmer US PMI prints, on the other hand, and a blow to the recent rebound in sentiment, may boost USD/CNH prices, resuming the pair’s upswing towards a rising resistance line from late December 2022, near to 7.3520 at the most.
If USD/CNH traders disregard overbought RSI and MACD circumstances, the Yuan pair will strive for a 15-year high at 7.3415 in October 2022.
Risk disclaimer:
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.
