USD/CNH Price Analysis: Upbeat China Industrial Profits fail to inspire Yuan bulls above 6.9400
- USD/CNH picks up bids to reverse the previous day’s pullback from six-week high.
- China Industrial Profits YTD improved to -21.4% through March versus -22.9% prior.
- RSI, MACD conditions challenge the offshore Chinese Yuan buyers but fortnight-old bullish channel keeps them hopeful.
USD/CNH grinds higher past 6.9400, around 6.9430 by the press time, as the pair traders struggle to justify improvement in China’s Industrial Profits during early Thursday.
In doing so, the offshore Chinese Yuan (CNH) pair might be taking clues from the cautious markets ahead of the US first quarter (Q1) Gross Domestic Product (GDP), expected to ease to 2.0% on an annualized basis versus 2.6% prior
That said, China’s Industrial Profits during the January-March period improved to -21.4% YoY versus -22.9% prior.
Technically, USD/CNH remains inside a two-week-old ascending trend channel, currently between 6.9650 and 6.9180.
The quote’s latest rebound from the 61.8% Fibonacci retracement level of March 08-23 downside, near 6.9250 by the press time, appears to keep the offshore Chinese Yuan bears hopeful.
However, nearly overbought RSI and a looming bear cross on the MACD suggest limited upside room for the USD/CNH pair.
It’s worth noting that multiple levels around 6.9100 and the 6.9000 round figure can challenge the USD/CNH bears past 6.9180.
On the contrary, an upside break of 6.9650 won’t hesitate to challenge the yearly high marked in March at around 6.9970.
USD/CNH: Four-hour chart
Trend: Gradual upside expected