Only a break below 7.11/7.10 would affirm a deeper down move – SocGen

Economists at Société Générale analyze USD/CNH technical outlook.

A short-term bounce is expected towards the 7.22 mark

USD/CNH uptrend faced stiff resistance near last September’s peak of 7.27/7.30 resulting in a phase of pullback. It has so far defended its recent pivot low at 7.11/7.10. Daily MACD is anchored within positive territory denoting a lack of steady downward momentum. 

Only a break below 7.11/7.10 would affirm a deeper down move. 

A short-term bounce is expected towards 7.22, the 61.8% retracement of the recent pullback.