USDCNH: The bear fiercely counterattacked

Fundamental analysis:

The effect of the global central bank interest rate hike will not appear until 2024. Georgieva's speech came on the eve of the European Central Bank's interest rate resolution, and the market generally expected that the bank would raise interest rates by 75 basis points on Thursday. The European Central Bank has said for several months that its first step will be to raise interest rates to a neutral level, but some policymakers now advocate more positive action, saying that inflation pressure should be further eased

USD/RMB USDCNH daily line chart:

Technical analysis:

The daily chart shows that the short-term exchange rate drops rapidly, MACD runs on the 0 axis and the volume can shrink slightly, RSI overbought areas fall rapidly, and the short-term exchange rate is expected to further decline, to observe whether the regional support is effective in case of long and short turns.

Empty turning point: 7.1500

Resistance level: 7.2600 7.3600

Support position: 7.0500 6.9500

Trading strategy: above 7.1500, bullish, target price is 7.2600, 7.3600

Alternative strategy: below 7.1500, bearish, with target prices of 7.0500 and 6.9500