USD/CNH technical analysis (daily chart): 8.9.23

USD/CNH technical analysis (daily chart):

USD/CNH has risen back to the August high in line with my bullish bias outlined in recent weeks. Price action has remained defiantly bullish despite news that China’s state banks have been actively USD/CNH. But we enter today’s session with a clear level around 7.35 to monitor to see if it can break higher and head for the 2022 high, or further headlines arrive to shake bulls out of their positions and pull back. Either way, it could be argued that Beijing are more than happy to have a weaker yuan to boost exports (even if they do say they want a domestic-demand driven economy). And theories aside, this trend is bullish and there are no immediate signs of a top – although bulls may want to trade with caution given the headline risk.