USD/CNH: On the rebound – OCBC
|USD/CNH rebounded again this morning after USD/CNY daily fix was set higher (at 7.1089 on Tue and 7.1072 on Monday vs. 7.1030 last Friday), snapping the 5-day streak of lower fixes. Pair was last at 7.1462, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Bearish xshows tentative signs of moderation
"Bearish momentum on daily chart intact but shows tentative signs of moderation while RSI rose from oversold conditions. Inverted hammer observed on Friday’s price pattern may point to bullish reversal in the short term."
"We continue to flag the risk of a short term rebound in USD/CNH, given a relatively large decline (on a multi-week horizon). Resistance at 7.1460 (61.8% fibo retracement of 2024 low to 2025 high), 7.1720/40 levels (21, 50 DMAs) and 7.20 levels (100 DMA, 50% fibo). Support at 7.1160 (recent low), 7.11 levels."
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