Manufacturing PMI rebounded in May, USD and RMB continued to organize

Fundamental analysis:

In May, China's manufacturing purchasing managers' index (PMI) was 49.6%, up 2.2 percentage points from the previous month and close to the average manufacturing PMI in the first quarter, indicating that economic operations tend to recover. Judging from the changes in the sub-indexes, the operation of the industrial chain and the supply chain has been gradually dredged, the production and market demand of enterprises have been compensated, the coordination of industrial recovery is good, and the operation of large and medium-sized enterprises has resumed. However, the current economic recovery is still insufficient, the overall market demand is insufficient, and the production and operation of enterprises have not fully returned to normal.

USDCNH daily chart:

Technical analysis: The daily moving averages are long lined up but the moving averages are weak, the exchange rate fluctuates in a narrow range, the MACD is running on the 0 axis and the volume can shrink slightly, and the RSI is down again.

Long-short turning point: 6.6416

Resistance: 6.7600 6.8870

Support level: 6.5385 6.4260

Trading Strategy: Above 6.6416, bullish with a price target of 6.7600, then 6.8870.

Alternative strategy: Below 6.6416, bearish with a price target of 6.5385, then 6.4260.

The above analysis is a personal opinion and is for reference only.