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PBOC signals gradual yuan gains as USD/CNH stays mildly bearish

USD/CNH last closed around 6.7210, with resistance seen near 6.7480 to 6.7540 and support at 6.72, 6.7140 and 6.70.

Reported · Written up by our desk · Major Pairs

OCBC’s Sim Moh Siong and Christopher Wong said the Chinese yuan, including both the RMB and CNH, has support as USD dynamics soften and exporter conversions continue, while the People’s Bank of China signals it prefers gradual gains through its daily fixing process.

FXStreet noted USD/CNH showed mild bearish momentum and an oversold RSI condition, with the pair’s downside bias tempered by the risk of a snapback around defined support and resistance levels.

The newsletter pointed to resistance at 6.7480, including the 21 DMA, and at 6.7540, while support was cited around 6.72, 6.7140, and 6.70, with 6.7140 linked to a 61.8% fibo retracement level from a 2022 low to a triple-top.

It also referenced technical levels and momentum context rather than a clear reversal trigger, stating the risk of a snapback was not ruled out despite the skew to the downside.

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