USDCNH Analysis: Unexpected committee attitude

Fundamental Analysis of USDCNHUSDCNH Key Takeaways

• US announces reciprocal tariffs: Overnight, US President Trump officially announced the reciprocal tariff policy, US stock index futures fell sharply this morning, and the offshore RMB weakened. Among them, the tariff on China is as high as 54%.
• cnh weakens: Previous analysis has said that China’s export data is extremely important for the RMB exchange rate. If the reciprocal tariff is officially implemented, USDCNH may continue to rise.

Technical Analysis of USDCNH Daily and Hourly ChartsUSDCNH Daily Chart Insights

(USDCNH Daily Price Chart, Source: Ultima Markets MT5)

• Stochastic oscillator: The indicator has entered the overbought area again, suggesting that short-term bullish forces have once again gained the upper hand. However, based on the fact that the exchange rate has not adjusted sufficiently, the indicator may fluctuate and adjust in the overbought area for a period of time.
• Resistance area: The exchange rate rebounded strongly due to fundamentals. After hitting the first target resistance area of 7.33, the exchange rate fell back. If the exchange rate continues to break up, it will look at the year’s high of around 7.36.

USDCNH 1-hour Chart Analysis

(USDCNH H1 Price Chart, Source: Ultima Markets MT5)

• Stochastic oscillator: The indicator weakened along with the exchange rate during the Asian session, and the exchange rate showed a full downward trend. Based on the daily bullish trend, wait for the indicator to be bullish again and pay attention to trading opportunities.
• Retracement price: The US dollar against the offshore RMB has retreated to around 50% of the previous trend during the Asian session, and there is a probability that the RMB will continue to depreciate. If the exchange rate breaks through 7.32709, the next target will at least look at the intraday high of 7.349.

Pivot Indicator Insights for USDCNH

(USDCNH M30 Price Chart, Source: Ultima Markets APP)

• According to Pivot Indicator in Ultima Markets APP, the central price of the day is established at 7.2998,
• Bullish Scenario: Bullish sentiment prevails above 7.2998, first target 7.3255, second target 7.3333;
• Bearish Outlook: In a bearish scenario below 7.2998, first target 7.2867, second target 7.2790.

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