Brief pullback is taking shape – Societe Generale

USD/CNH has struggled to overcome crucial graphical hurdle of 7.37 representing highs of 2022/2023, Societe Generale’s FX analysts report.

Short-term price action can remain constricted

“A brief pullback is taking shape after this test. The pair has failed to defend the 50-DMA denoting lack of steady upward momentum. Recent pivot low of 7.24/7.23 is an important support zone. Short-term price action could remain constricted within limits of 7.24/7.23 and 7.37; a break beyond one of these bands would be crucial for confirming a directional move.”