USDCNH forecast bullish despite strong Caixin manufacturing sector activity report
Technical Analysis Summary USD/CNH: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(200) | Buy | |
| Fractals | Neutral | |
| Parabolic SAR | Buy |
Chart Analysis
The technical analysis of the USDCNH price chart on 4-hour timeframe shows USDCNH,H4 is retracing up above the 200-period moving average MA(200) following a correction after hitting ten-week high a week ago. We believe the bullish movement will continue after the price breaches above the upper bound of the Donchian channel at 7.2655. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 7.2472. After placing the order, the stop loss is to be moved to the next fractal low indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of -
China’s manufacturing sector continued expanding in March. Will the USDCNH price persist rebounding?
China’s manufacturing sector continued expanding in March: SP Global reported the Caixin Manufacturing PMI rose to 51.1 for March from 50.9 for February when an uptick to 51 was forecast. Readings above 50.0 indicate industry expansion, below indicate contraction. Business activity in manufacturing sector continued expanding due to rise in new orders, including from abroad. However, input prices fell for the first time in eight months. Chinese business activity expansion is bearish for USDCNH. At the same time the Institute for Supply Management (ISM) reported US factory activity unexpectedly expanded in March for the first time since September 2022. Expanding US manufacturing activity is bullish for the USDCNH pair. The current setup is bullish for the pair.