USDCNH: Breaking 7 is just around the corner

Fundamental analysis:

After almost "breaking 7", the market exchange rate of the RMB against the US dollar ushered in a rebound. According to industry analysts, the recent increase in the fluctuation of the RMB exchange rate is mainly due to the fluctuation of the international foreign exchange market. The two-way fluctuation of the RMB exchange rate is the norm, and short-term fluctuations are normal. There will be no "one-sided market", and there is no need to pay too much attention to whether it "breaks 7" or not. At present, the domestic economy has stabilized and recovered, and the trade surplus has remained at a high level. In addition, relevant departments have strengthened macro-prudential management and guidance in a timely manner. The RMB exchange rate does not have the basis for long-term depreciation.

USDCNH daily chart:

A brief technical analysis:

From the daily chart: the short-term exchange rate fell and quickly rose after finishing. MACD was running on the 0-axis and the volume could continue to increase slightly. RSI continued to rise. It is expected that the short-term exchange rate will likely rise further.

Long-short turning point: 6.8225

Resistance: 6.9225 7.0225

Support level: 6.7000 6.5750

Trading strategy: above 6.8225, bullish, target price at 6.9225, 7.0225

Alternative strategy: below 6.8225, bearish, target price is 6.7000, 6.5750