Chinese Yuan rallies after PBoC rate decision
MarketsFN Team
The PBoC kept the one-year loan prime rate at 3.55% , as expected by the financial community. In the foreign exchange market, even the session is dominated today by US dollar strength, the Chinese Yuan is gaining ground against the US dollar, with USD/CNH down by 0.68% to 7.1829.
From a technical perspective, the rate is still in a bullish framework thus despite the strength of the Yuan today more bearish elements should develop for the layout of a USD/CNH bearish framework that would confirm People Bank of China support for the currency.
Yesterday high should be the lower high from the 2023 top and the level that found support on the 55 day EMA on July 14 should work as a lower low. Prices below this level are likely to trigger bearish sentiment for the pair while a breakout of today high, in case bullish forces would be in control, are likely to test the 2023 high again.
