USDCNH had able to hold above the long-term uptrend that started in 2014 but still looking undecided. PBOC’s decision about reducing the reserve ratio by 50 basis points and recent dollar index surge is supporting the upward moves while increasingly positive trade balance limiting up moves.
Technicals showing huge upside for medium to long-term. USDCNH is near the 8-year uptrend and the Covid-19 shock’s downtrend is already broken. 6.55 and 6.60 resistances will be key for more bullish moves. As for support 6.4390 can be followed for short-term moves. Below that level, 6.4090 will be key support.