USD/CNH has dropped to the 2024 low around 6.96 after breaking the lower boundary of a descending triangle, with no clear rebound signals yet, Société Générale’s FX analysts note.
Pair breaks triangle support, downtrend persists
“USD/CNH broke below the lower boundary of a descending triangle in November, extending its decline. The pair has reached the 2024 trough at 6.97/6.96, which could act as interim support. Signals of a meaningful rebound are not yet visible.”
“Should a short-term recovery materialize, the 50-DMA near 7.06 may limit upside. Failure to hold 6.96 could extend the downtrend toward the next projection at 6.94.”
Source: https://www.fxstreet.com/news/usd-cnh-extends-decline-toward-2024-lows-societe-generale-202601071106