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USD/CNH Technical Analysis - USD/CNH Trading: 2022-03-15
USD/CNH Technical Analysis Summary
Above 6,39
Buy Stop
Below 6,3
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Buy |
| MA(200) | Neutral |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Buy |
USD/CNH Chart Analysis
USD/CNH Technical Analysis
On the daily timeframe, USDCNH: D1 has broken the downtrend resistance line. A number of indicators of technical analysis formed signals for further growth. We do not rule out a bullish movement if USDCNH rises above its latest high and upper Bollinger band of 6.39. This level can be used as an entry point. Initial risk cap possible below the low since April 2018, the Parabolic signal and the last three down fractals: 6.3. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (6.3) without activating the order (6.39), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Forex - USD/CNH
The Chinese economy is showing signs of slowing down. Will the USDCNH quotes continue to rise?
The upward movement means the Chinese yuan weakens against the US dollar. The volume of issued loans (New Yuan Loans) issued by the People's Bank of China (PBC) in February amounted to 1.23 trillion yuan. This is noticeably less than the forecast of 3.2 trillion. yuan. Earlier, inflation in China in February (+0.9% y/y) also turned out to be higher than expected (+0.6% y/y). On Tuesday, March 15, several more significant Chinese economic indicators will be published: industrial production, retail sales and unemployment. Remember that China's GDP in the 4th quarter of 2021 grew by 4% y/y. This is less than the forecast of +5.4% y/y and the increase in the 3rd quarter of +4.9% y/y. For all of 2022, Chinese authorities expect economic growth to slow to 5.5% from 8.1% in 2021. An additional negative for the yuan could be a new outbreak of coronavirus in northeastern China. The most important event for the US dollar will be the next meeting of the Fed on March 16. The rate is expected to increase from 0.25% to 0.75%.
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