Break below 7.22 can lead to deeper downtrend – Societe Generale

USD/CNH has experienced a gradual decline after facing strong resistance at graphical level of 7.37 representing highs of 2022/2023, Societe Generale’s FX analysts report.

Inability to overcome 7.37 denotes risk of a down move

“It has revisited the 200-DMA near 7.22 which is an interim support. A brief bounce is taking shape but inability to overcome 7.37 could denote risk of persistence in down move. Break below 7.22 can lead to deeper downtrend towards next projections of 7.19 and 7.16.”