The USDCNH is fluctuating near its peak levels from November 2022 but has been inactive recently.
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- USD/CNH seesaws around the highest levels since November 2022, sidelined of late.
The pair currently trades last at 7.19673.
The previous day high was 7.1894 while the previous day low was 7.1606. The daily 38.2% Fib levels comes at 7.1784, expected to provide support. Similarly, the daily 61.8% fib level is at 7.1717, expected to provide support.
USD/CNH buyers keep the reins for the fourth consecutive day as they prod the highest levels since November 2022 during early Wednesday in Europe. In doing so, the offshore Chinese Yuan (CNH) pair justifies the broad weakness of the Chinese currency, as well as the US Dollar strength, amid upbeat US data and hawkish Federal Reserve (Fed) clues. Additionally, favoring the pair buyers are the market’s fears of the US-China tension and the monetary policy divergence between the People’s Bank of China (PBoC) and the Fed.
Earlier in the day, China’s Ministry of Finance (MoF) recently announced its intention to take drastic measures while cutting the purchase tax during 2024-25 and 2026-27. The same joins the latest headlines from Reuters suggesting the Chinese government advisers call for more stimulus measures.
That said, the People’s Bank of China (PBoC) first cut in the two key lending rates (namely the Loan Prime Rate (LPR) and Medium-term Landing Facility (MLF) rate) for the first time in almost a year to propel the market’s liquidity and tame calls of economic slowdown. However, the moves failed to inspire the CNH bulls and drowned the currency toward the fresh yearly low.
On the other hand, the geopolitical fears surrounding the US and China weigh on the sentiment in Asia and fuel the USD/CNH prices amid a dicey market. Recently, China’s Ministry of Foreign Affairs (MoFA) said that the US has distorted its political promise to China. Late on Tuesday, US President Joe Biden termed Chinese President Xi Jinping a dictator and flagged concerns of intense Sino-American tension earlier in the day.
Elsewhere, hawkish comments from the Fed policymakers, mainly the nominees, and strong US housing data also fuel the USD/CNH price as markets await Fed Chairman Jerome Powell’s bi-annual testimony.
Above all, USD/CNH buyers cheer the monetary policy divergence between the PBoC and the Fed.
A six-week-old ascending trend channel, currently between 7.2200 and 7.1400, restricts short-term moves of the USD/CNH pair. Also acting as an immediate downside filter is the 21-DMA level of 7.1280. It’s worth noting that the RSI and MACD conditions suggest buyers are running out of steam.
Technical Levels: Supports and Resistances
USDCNH currently trading at 7.1972 at the time of writing. Pair opened at 7.1824 and is trading with a change of 0.21% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 7.1972 |
| 1 | Today Daily Change | 0.0148 |
| 2 | Today Daily Change % | 0.21% |
| 3 | Today daily open | 7.1824 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 7.125, 50 SMA 7.0148, 100 SMA @ 6.9457 and 200 SMA @ 6.9939.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 7.1250 |
| 1 | Daily SMA50 | 7.0148 |
| 2 | Daily SMA100 | 6.9457 |
| 3 | Daily SMA200 | 6.9939 |
The previous day high was 7.1894 while the previous day low was 7.1606. The daily 38.2% Fib levels comes at 7.1784, expected to provide support. Similarly, the daily 61.8% fib level is at 7.1717, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 7.1656, 7.1487, 7.1368
- Pivot resistance is noted at 7.1944, 7.2063, 7.2232
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 7.1894 |
| Previous Daily Low | 7.1606 |
| Previous Weekly High | 7.1922 |
| Previous Weekly Low | 7.1038 |
| Previous Monthly High | 7.1344 |
| Previous Monthly Low | 6.8962 |
| Daily Fibonacci 38.2% | 7.1784 |
| Daily Fibonacci 61.8% | 7.1717 |
| Daily Pivot Point S1 | 7.1656 |
| Daily Pivot Point S2 | 7.1487 |
| Daily Pivot Point S3 | 7.1368 |
| Daily Pivot Point R1 | 7.1944 |
| Daily Pivot Point R2 | 7.2063 |
| Daily Pivot Point R3 | 7.2232 |
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