USDCNH: The uplink starts to accelerate

Fundamental analysis:

The People's Bank of China released the report on RMB internationalization in 2022, which mentioned that the role of the standing currency swap arrangement with Hong Kong, China, should be played well to provide long-term stable RMB liquidity for the RMB market in Hong Kong. We will continue to improve the offshore RMB liquidity supply mechanism, stimulate market players to innovate and develop products and services in the offshore RMB market, enrich the offshore RMB product system, and promote the formation of a virtuous circle between the onshore and offshore RMB markets. Optimize the layout of RMB clearing banks, strengthen policy support for clearing banks, and give full play to the positive role of clearing banks in cultivating the offshore RMB market.

USD/RMB USDCNH daily line chart:

Technical analysis:

From the daily chart, we can see that the short-term exchange rate continues to rise without any sign of adjustment. MACD runs on the 0 axis and the volume can continue to increase slightly. RSI continues to rise. It is expected that the short-term exchange rate will go up further after the settlement.

Empty turning point: 7.0500

Resistance level: 7.1500 7.2500

Support position: 6.9500 6.8500

Trading strategy: above 7.0500, bullish, target prices are 7.1500 and 7.2500

Alternative strategy: bearish below 7.0500, with target prices of 6.9500 and 6.8500