USD/CNY Forecast Today 11/7: Holds Strong (Video+Chart)
Date
7/11/2024 4:48:28 AM
(MENAFN- Daily Forex)
In my daily analysis of the US dollar against the Chinese yuan it's obvious that we still have plenty of support near the 7.28 level. We went into an area of the previously had been resistant. We also have the 50 day EMA sitting underneath and it is rising at this point in time.
So, I think ultimately a short term pullback will more likely than not continue to attract attention. The next couple of days could be crucial, though, because we do have the consumer price
index numbers coming out of the United States on Thursday. While we have the producers price index numbers coming out of the United States on Friday, both of these numbers give us a good idea on what's going on with the US economy and as far as inflation is concerned.
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I think you've got a situation where traders will pay very close attention to what the Federal Reserve may or may not do. And it's also worth noting that the global economy, perhaps slowing down a little bit, could put a little bit of pressure on China itself. All things being equal, this is a market that I think continues to be very choppy and noisy, but it also looks as if it is firmly ensconced in some type of grind.
To the upside, not necessarily a breakdown. That being said, if we were to break down below the 50 day EMA, then it could send the US dollar down to the 7.25 level. After that, we have the 200 day EMA near the 7.22 level, which of course could also offer support. Ultimately, this is a market that's just been rising slowly as the people's Bank of China will do everything it can to control the narrative and the market itself. As traders around the world assess the idea of what's going on with the Chinese economy and perhaps more importantly, the Federal Reserve.
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