USDCNH: Strong short-term support

Fundamental analysis:

Domestic microeconomic data show that growth is gradually improving, and domestic equity assets are still overweight, and underweight commodities and bonds. The micro data in June improved significantly, further confirming the bottom of the economy in May. It is expected that the GDP growth rate in the second quarter announced in July is expected to be slightly positive, and the economic growth in the third quarter will fully enter the recovery channel. The CPI has slowed down in stages and the micro data has improved. The support of the superimposed easing policy will not change in the short term, and the domestic economy is in the early stage of recovery.

USDCNH daily chart:

A brief technical analysis:

From the daily chart, the price has converged and sorted out, the Bollinger Bands indicator has moved in translation, the MACD is running on the 0-axis and the volume can continue to shrink slightly, and the RSI trend is flat.

Long-short turning point: 6.6416

Resistance: 6.7600 6.8870

Support level: 6.5385 6.4260

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

Alternative strategy: below 6.6416, bearish, the target price is 6.5385, 6.4260.