The USD/CNH pair strengthened to approximately 7.3140 during the Asian trading session on Monday, buoyed by the US Dollar’s gradual uptick. This increase follows comments from US President Donald Trump, who indicated plans to announce reciprocal tariffs on multiple countries by early this week, although he did not specify which nations would be targeted. Trump also confirmed that new 25% tariffs on all steel and aluminum imports are set to be imposed.
On the technical front, the bullish sentiment for USD/CNH remains intact, with the price consistently staying above the critical 100-period Exponential Moving Average (EMA). This upward momentum is further supported by the Relative Strength Index (RSI), which stands above the neutral 50 mark, around 55, indicating that upward pressure persists.
Looking at key resistance levels, the upper boundary of the Bollinger Bands sits at 7.3595, marking an immediate hurdle for the pair. A breakout above this level could lead to a potential rise towards 7.3673, which represents the high of February 3.
For the downside, initial support is observed at 7.2688, corresponding to the low of February 5. If downward pressure intensifies, the pair could fall to 7.2568, near the 100-day EMA. A deeper decline could push USD/CNH toward 7.2320, the lower limit of the Bollinger Band.
Traders will continue to monitor US tariff policy developments, which could exert additional influence on the pair’s direction.
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