USD/CNH’s current downtrend has paused after discovering help close to 7.16, with a modest rebound now unfolding. Nonetheless, upside might stay restricted for now, as break under 7.16 can prolong the downtrend, Société Générale’s FX analysts notice.
Break under 7.16 would possibly set off a drop in direction of 7.10/7.08
“USD/CNH decline has stalled after carving out an interim low close to 7.16 final month. A quick rebound is taking form after this check. The pair is steadily inching in direction of current pivo excessive and the 50-DMA close to 7.26, which could possibly be an interim resistance.”
“If the bounce peters out close to this hurdle, the section of correction might resume. Break under 7.16 can prolong the downtrend in direction of the ascending development line drawn since 2023 at 7.10/7.08.”
