- USD/CNH slips to approximately 7.3170 during Thursday’s early European session, down 0.29% for the day.
- The pair maintains a bullish outlook, supported by its position above the 100-day EMA and a positive RSI indicator.
- Immediate resistance lies in the 7.3400-7.3405 range, while initial support is at 7.2974.
USD/CNH edges lower to around 7.3170 during Thursday’s early European session, but downside potential remains limited due to expectations of slower US rate cuts in 2025 and potential protectionist policies under incoming President Donald Trump.
Weaker-than-expected Chinese Caixin Manufacturing PMI for December has raised concerns about a slowing recovery in China’s economy, adding pressure on the Chinese Yuan.
From a technical perspective, USD/CNH retains a bullish outlook, supported by its position above the 100-period Exponential Moving Average (EMA) and an RSI reading near 59.30, favoring upward momentum.
Immediate resistance is at the 7.3400-7.3405 region, marked by the upper Bollinger Band and a psychological level. A break above this zone could open the door to 7.3697, the December 31 high.
On the downside, initial support stands at 7.2974, the December 30 low, followed by 7.2745 (December 13 low) and 7.2588, the lower Bollinger Band boundary.
USD/CNH daily chart
