USD/CNH: Offshore yuan eyes gains as China's Industrial Profits surge

China's offshore yuan consolidates on Tuesday's 0.24% gain.
China's Industrial Profits registered a double-digit rise in December.
USD/CNH's daily chart suggests scope for a continued rise in yuan.

Omkar Godbole FXStreet Contributor

China's offshore yuan (CNH) looks north on the back of upbeat economic data and a favorable technical setup.

China's Industrial Profits rose 20.1% year-on-year in December to 707.11 billion yuan ($109.40 billion) following November's 15.55 gain, marking an eighth consecutive monthly rise in a row, according to data from the National Bureau of Statistics. Also, China's benchmark overnight repo rate jumps to an over 21-month high in a CNH-positive manner.

The positive fundamental factors gel well with the bullish CNH picture painted by USD/CNH's bear flag breakdown confirmed on Tuesday. The pattern suggests a continuation of an eight-month downtrend and has exposed support of 6.4119 – the level observed on Jan. 5.

The offshore yuan is currently trading largely unchanged on the day near 6.4718 per US dollar. The Chinese currency rose by 0.24% to 6.4707 on Tuesday.

Daily chart

Technical levels

USD/CNH

Overview
Today last price	6.4707
Today Daily Change	-0.0010
Today Daily Change %	-0.02
Today daily open	6.4714

Trends
Daily SMA20	6.4742
Daily SMA50	6.5139
Daily SMA100	6.6153
Daily SMA200	6.8216

Levels
Previous Daily High	6.4904
Previous Daily Low	6.469
Previous Weekly High	6.5075
Previous Weekly Low	6.4552
Previous Monthly High	6.5854
Previous Monthly Low	6.4887
Daily Fibonacci 38.2%	6.4772
Daily Fibonacci 61.8%	6.4822
Daily Pivot Point S1	6.4634
Daily Pivot Point S2	6.4554
Daily Pivot Point S3	6.4419
Daily Pivot Point R1	6.4849
Daily Pivot Point R2	6.4984
Daily Pivot Point R3	6.5064

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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