Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- Technical indicators on USD/CNH are turning increasingly bullish as downside momentum in the cross stalls out in 2021.
- Since the start of the year, price action has been broadly contained in the 6.40-6.60 range after CNH mounted an impressive +11.64% gain vs the USD from late April to its peak at the start of June 2021.
- The cross is now facing renewed upside pressure as high frequency economic indicators show signs of faltering growth, alongside a massive domestic crackdown on the tech industry and the Fed looks to taper asset purchases by year end. Moreover, the recent RRR cut and potential expectations for more in the pipeline have also added to CNH weakness in the near-term.
- On the tech front, the cross is facing a bullish golden cross pattern with the 50dma looking to summit the 200dma in the coming sessions.
- RSI oscillator momentum remains bullish after finding support at the 50 line in July & August, potentially signalling scope for more upside. Tentative signs of a bullish inverted H&S Pattern also appearing on the daily chart – but is less clear cut.
- Key levels on the topside seen at the 23.6% Fib (6.557), lateral resistance at 6.60 and the 38.2% Fib at 6.6799 which aligns with support and resistance levels in 2019 & 2017. A move below 6.45 would negate these bullish patterns.
USD/CNH
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok