Is the Chinese Yuan Readying to Reverse?
The Chinese Yuan spent most of 2021 appreciating against the US Dollar despite a broadly upbeat year for the latter. Now, fundamentals may be paving the way for its turnaround amid the risk of slowing demand for Chinese exports - dailyfx.com/forex/fundamental/article/special_report/2022/01/02/US-Dollar-May-Rise-Against-the-Yuan-Will-2022-Chinese-Export-Demand-Slow-Top-Trade-Q1-2022.html
USD/CNH recently turned higher following a more hawkish Federal Reserve, reinforcing the key 6.3526 - 6.3238 support zone. Meanwhile, the PBOC is looking comparatively dovish.
Positive RSI divergence shows that downside momentum is fading, which can at times precede a turn higher.
Immediate resistance appears to be the 61.8% Fibonacci extension at 6.3833 before the midpoint at 6.4110.
Down the road, the pair would have to face falling resistance from March which could reinstate the broader downside focus.
On the other hand, taking out the key support zone exposes the 100% extension at 6.2936.
USD/CNH recently turned higher following a more hawkish Federal Reserve, reinforcing the key 6.3526 - 6.3238 support zone. Meanwhile, the PBOC is looking comparatively dovish.
Positive RSI divergence shows that downside momentum is fading, which can at times precede a turn higher.
Immediate resistance appears to be the 61.8% Fibonacci extension at 6.3833 before the midpoint at 6.4110.
Down the road, the pair would have to face falling resistance from March which could reinstate the broader downside focus.
On the other hand, taking out the key support zone exposes the 100% extension at 6.2936.
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