Ella 
USD/CNH hit a one-month support line in early trading on Wednesday and remained subdued around 7.2970. Supported by cautious optimism triggered by China, the market consolidated ahead of the US PMI, and USD/CNH interrupted the consolidation rebound seen the day before.
U.S. Treasury yields retreat from multi-year highs and S&P 500 futures rebound ahead of PMI on expectations of continued stimulus in China
However, the MACD indicator signal will build a dead cross and the relative strength indicator is close to oversold, suggesting that the USD/CNH price will undergo a correction, and then fall below the immediate support around 7.2850.
After that, the 50-DMA support at 7.2170 will act as the last line of defense for the bulls before sinking it closer to the 61.8% Fibonacci retracement of the October 2022-January 2023 downtrend around 7.1170.
On the upside, a strong U.S. PMI and a pick-up in risk sentiment could push USD/CNH up, resuming its uptrend, bouncing near the rising resistance line from late December 2022 (latest around 7.3520).
If USD/CNH traders ignore the overbought conditions on the RSI and MACD indicators, it will point to the October 2022 15-year high near 7.3415.
