USDCNH: Bulls continue to edge up

Fundamental analysis:

On September 27, the People's Bank of China announced that in order to maintain stable liquidity at the end of the quarter, the People's Bank of China carried out 113 billion yuan in 7-day and 62 billion yuan in 14-day reverse repurchase operations through interest rate bidding, with interest rates of 2.00% respectively. and 2.15%. The central bank proactively provided funds across the month, stabilized market expectations, and protected funds at the end of the quarter. The upward trend in the funding rate may indicate that the current positive margin of liquidity has converged and will remain reasonably sufficient.

USDCNH daily chart:

A brief technical analysis:

From the daily chart: the short-term exchange rate continues to rise slightly, and there is no sign of adjustment for the time being. MACD is running on the 0-axis and the volume can continue to increase. The RSI continues to rise slightly.

Long-short turning point: 7.0500

Resistance: 7.1500 7.2500

Support level: 6.9500 6.8500

Trading strategy: above 7.0500, bullish, target price at 7.1500, 7.2500

Alternative strategy: below 7.0500, bearish, target price is 6.9500, 6.8500