Inability to hold 7.22 can lead to a deeper pullback – Societe Generale

USD/CNH recently tested the 200-DMA at 7.22 resulting in a brief rebound, Societe Generale’s FX analysts report.

Next objectives can be located at 7.17/7.16

“It has crossed the descending trend line drawn since January highlighting possibility of extension in bounce. Recent pivot high of 7.31 is a short-term hurdle. If the pair fails to overcome it, the phase of correction could extend. Inability to hold 7.22 can lead to a deeper pullback. Next objectives could be located at projections of 7.17/7.16.”