USD/CNH Price Analysis: Pierces weekly resistance on PBOC inaction
- USD/CNH prints three-day uptrend, picks up bids of late.
- PBOC kept one-year, five-year LPR unchanged at 3.7% and 4.6% respectively.
- Steady RSI hint at sustained recovery from 50% Fibonacci retracement level, 200-SMA adds to the downside filters.
USD/CNH picks up bids to renew intraday high around 6.3725, rising for the third consecutive day during Monday’s Asian session.
The offshore Chinese currency (CNH) pair’s recent gains could be linked to the People’s Bank of China’s (PBOC) inaction. As per the latest policy move, the one-year Loan Prime Rate (LPR) was kept at 3.7% while the five-year counterpart remained unchanged at 4.6%.
Read: PBOC keeps benchmark interest rate unchanged at 3.7%
Following the PBOC status-quo, USD/CNH crosses a one-week-old descending trend line, which in turn joins sustained trading beyond the key SMAs and steady RSI to favor buyers.
That said, the 23.6% Fibonacci retracement (Fibo.) of February-March upside, near 6.3860, lures intraday bulls ahead of the monthly high of 6.4100.
During the rise, the 6.4000 threshold may act as an intermediate halt.
On the flip side, the 50-SMA level of 6.3600 initially challenges the pullback moves before the 61.8% Fibo. level surrounding 6.3455.
However, USD/CNH bears will remain cautious until witnessing a clear downside break of the 200-SMA level of 6.3430.
USD/CNH: Four-hour chart
Trend: Further upside expected