USDCNH: Bears on the downside

The USD/RMB remained oscillating around 6.88272. Zou Lan, Director of the Central Bank’s Monetary Policy Department, said at a press conference on financial statistics that the lack of flexibility in the exchange rate mechanism is an important reason for restricting the autonomy of monetary policy and leading to economic and financial fragility at the macro level. Therefore, insisting that the RMB exchange rate is determined by market supply and demand, and a flexible exchange rate formation mechanism create conditions for enhancing the autonomy of monetary policy, help to release external pressure in a timely manner, and increase the space for domestic monetary policy to be controlled by myself.

US dollar RMB USDCNH - the 4-hour K-line chart shows:

Looking at the 4-hour chart: the momentum of opening short positions at high levels continues to move downwards, the market is shrouded in bearish sentiment, the MACD indicator is in the long zone and moves downward, and the RSI indicator is hovering weakly near the 50 balance line;

Resistance levels: 6.89117 6.89604

Support levels: 6.87788 6.87286

Trading strategy: bearish below 6.88256, target 6.87788 6.87286

Alternative strategy: Bullish above 6.88256, target 6.89117 6.89604