USDCNH: low volatility

Fundamental analysis:

USD/RMB remained volatile around 7.01856, and expectations of a U.S. economic recession were strengthening. Against the background of cooling inflation data and the Federal Reserve’s “hinting” to slow down interest rate hikes, the U.S. dollar index fell by more than 5% in November, pushing up the RMB against the U.S. dollar . In the long run, the strengthening of the RMB exchange rate indicates that expectations for a stable and upward domestic economy are strengthening. Recently, favorable policies in areas such as the optimization of the epidemic and real estate have been issued frequently in China, which has boosted the market's confidence in China's economic recovery in the future.

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

Brief technical analysis:

Looking at the 4-hour chart: the market’s bearish momentum is strong, the lows continue to fluctuate and move downward, the short-term decline may continue, the market as a whole is in the downward movement of short positions, the MACD indicator is in the short zone, and the RSI indicator is in the short zone.

Long-short turning point: 7.02569

Suppression: 7.00476, 6.99200

Support: 7.04226, 7.05654

Trading strategy: bearish below 7.02569, target 7.04226, 7.05654

Alternative strategy: Bullish above 7.02569, target 7.00476, 6.99200