USDCNH: Up or End

Fundamental analysis:

The policy of stabilizing domestic economic growth has been effective, and it is difficult for the US Index to cause a big storm against the RMB exchange rate. In the face of the US dollar, "he is strong as he is strong", the domestic government should do "the breeze blows the hills". On the one hand, the foreign exchange market authorities should continue to strengthen the monitoring of cross-border capital flows and market expectations, prepare risk hedging plans, continue to "focus on me", and stabilize the domestic economic market; On the other hand, participants in the foreign exchange market took a calm view of the short-term sharp fluctuations in exchange rates, avoided chasing up and down, and reduced the exposure to exchange rate risk through such hedging means as "exchange settlement at high prices and purchase at low prices".

USD/RMB USDCNH daily line chart:

Technical analysis:

The daily chart shows that the short-term exchange rate drops sharply after rising. The adjustment demand is strong. MACD runs on the 0 axis and the volume can continue to increase. The RSI tends to be flat. It is expected that the short-term exchange rate will fall further.

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