USD/CNH has lost traction after failing to hold above its 50-DMA and now trades below key March support, with the pair’s inability to reclaim 7.30 suggesting further downside risk toward 7.14 and 7.10, Société Générale’s FX analysts note.
“USD/CNH faced strong resistance near 7.43 last month and quickly gave up the 50-DMA. It has now dipped below March lows denoting regaining downward momentum.”
“The pair has formed an interim low near 7.18. A brief bounce can’t be ruled out but inability to overcome last week high of 7.30 can result in persistence of downtrend. Next potential objectives could be located at projections of 7.14 and 7.10.”