USDCNH: Backtest to buy dips

Fundamental analysis:

Goldman Sachs economists believe the Federal Reserve will not be "full fire" to fight inflation when it decides on interest rates next week. Chief Economist Jan Hatzius said softening inflation expectations and falling gasoline prices meant that the FOMC is not expected to increase the pace of rate hikes in the near future, with only a 75 basis point hike at its July meeting. To put it another way, the 100 basis point interest rate hike this time, the reduction in the rate hike in the remaining 3 meetings during the year is not much different from the 75 basis point increase in the interest rate hike this time, and the effect of adding more points in the remaining 3 meetings during the year.

USDCNH daily chart:

A brief technical analysis:

From the daily chart: the price is weak in the follow-up, and the MACD is running on the 0-axis and the volume can continue to increase slightly. The RSI has begun to rise. It is expected that the short-term exchange rate will likely rise further.

Long-short turning point: 6.6416

Resistance: 6.7600 6.8870

Support level: 6.5385 6.4260

Trading strategy: above 6.6416, bullish, target price is 6.7600, 6.8870

Alternative strategy: below 6.6416, bearish, target price at 6.5385, 6.4260