- The USD / CNH does not extend the losses of the previous day, aims for a resistance line of several days.
- China’s retail sales and capital investment were below expectations; the PBOC refrained from cutting MLF rates.
- A confluence of the monthly support line, the 21-day EMA limits the immediate decline.
The USD / CNH posted slight gains of almost 0.10% while raising the auction to 7.1162 before the European session on Friday.
The pair recently benefited from optimistic impressions or the month of April from China Retail sales and capital investments while meeting the the People’s Bank of China (PBOC) no rate change at 2.95%.
That said, the odds are currently climbing towards a downward trend line from March 19, around 7.1325, a break of which could drive the climb to the monthly peak towards 7.1563.
During the pair’s extended rise above 7.1563, the March 19 high near 7.1654 will be on the bull’s radar.
On the other hand, a confluence of the monthly support line and the 21-day EMA restricts the immediate declines of the pair near 1.1010 / 15, a break of which could drag it towards the support of the near triangle. 7.0660 / 55.
If all bears dominate beyond 7.0655, a 200-day EMA level of 7.0160 could flash on their radars.
USD / CNH daily chart
Trend: continuation of the expected recovery