USDCNH: Risks linger, pull back slightly

Fundamental analysis:

On the evening of August 2, US House of Representatives Speaker Nancy Pelosi visited Taiwan like a thief, detonating the mine she threw on the situation in the Taiwan Strait and Sino-US relations. How bad the nature of this incident is and how serious the consequences are, China has repeatedly and solemnly warned it. But Pelosi still turned a deaf ear, and Washington did not take effective measures to stop it, causing the situation in the Taiwan Strait to face a new round of tension and severe challenges. China's countermeasures will not be a one-off, but a long-term, resolute, and steadily advancing combined action.

USDCNH daily chart:

A brief technical analysis:

From the daily chart: the price has fallen slightly but is still in a strong area, the MACD is running on the 0-axis but the volume can shrink slightly, and the RSI has fallen slightly. It is expected that the short-term exchange rate will likely rise further after falling back.

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