USD/CNH has misplaced traction after failing to carry above its 50-DMA and now trades beneath key March assist, with the pair’s incapacity to reclaim 7.30 suggesting additional draw back danger towards 7.14 and seven.10, Société Générale’s FX analysts word.
Resistance at 7.30 key to capping any rebound
“USD/CNH confronted robust resistance close to 7.43 final month and rapidly gave up the 50-DMA. It has now dipped beneath March lows denoting regaining downward momentum.”
“The pair has shaped an interim low close to 7.18. A quick bounce can’t be dominated out however incapacity to beat final week excessive of seven.30 may end up in persistence of downtrend. Subsequent potential goals may very well be situated at projections of seven.14 and seven.10.”
