USD/CNY continues its downmove, trading just above the 6.90 mark, and analysts at Credit Suisse remain biased lower within the broad range. They expect a dip towards 6.8406/8242.
Key quotes
“USD/CNY has continued its downmove since breaking below the 61.8% retracement of Q1 surge and July low at 6.9694/5 and in line with its inrange ‘head & shoulders’ top. The ‘measured objective’ to this top suggests we should see a move to the 2020 and July 2019 low as well as the 38.2% retracement of the 2018/2019 upmove at 6.8406/8242, where we expect the market to hold and shift into a broad range.”
“It is worth noting that a break below 6.8406/8242 at any stage would complete a much larger and more important ‘double top’.”
“We now look to hold below 6.9738 to maintain the downside pressure.”
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