CHN50 in uptrend as PMIs show expansion
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FXCM's CHN50 basket is in uptrend. It has charted a higher trough followed by a higher peak. The current down-leg appears corrective, retracing to the previous up-leg's 76.4% Fibonacci level (red horizontal). CHN50 could find support at this level and chart the next higher trough (HT?) in the series. Its RSI remains on the bullish side of 50, but is near dropping below (black ellipse). The longer it stays above 50, the greater the chance that a higher trough will be charted.
Overnight, three PMIs were released:
-The Manufacturing PMI beat the forecast of 50.7 and printed at 52.6. This is higher than the previous 50.1.
-The Non-Manufacturing PMI came in at 56.3. This beat the forecast of 55.0 and was higher than the previous 54.4.
-The Caixin Manufacturing PMI was 51.6, against the 50.7 forecast, and beat the previous 49.2.
Values above 50 show expansion and these suggest that the reopening of China is proceeding constructively. The Caixin Services PMI is due out on Friday with a forecast of 54.3.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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