USDCNH: Shock and rise

The U.S. dollar against the RMB remained volatile around 6.88112. The profits of industrial enterprises above designated size in China plummeted by 23% from January to February, of which: the profits of foreign companies fell by 36%, and the decline was even greater than that in 2022; the profits of private enterprises fell by 20%; the profits of state-owned enterprises fell 18%. And surprisingly, industrial output is rising during this period, with the PMI reaching its highest level in a decade.

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

Looking at the 4-hour chart: the low-level long-term momentum maintained a volatile upward trend, and after the short-term bullish sentiment began to rise, there were signs of consolidation. The MACD index was hovering above the 0 axis, and the RSI index was on the 50 balance line.

Resistance levels: 6.88982 6.89962

Support levels: 6.86564 6.85617

Trading strategy: Bullish above 6.87643, target 6.88982 6.89962

Alternative strategy: bearish below 6.87643, target 6.86564 6.85617