The USD/CNY pair completed a small base to suggest further corrective upside in the near-term with a break above the 6.5561 mark opening the door for a test of the 6.6016 level, per Credit Suisse.
See – USD/CNY: Yuan is close to peak as China’s growth momentum cools off – Nordea
Key quotes
“USD/CNY maintains a small base and has seen the expected test of 6.5561. However, with MACD momentum also pointing at further upside, further strength is likely in due course.”
“A direct break above 6.5561 would warn of further upside with resistance seen thereafter at the 23.6% retracement of the 2020/2021 fall at 6.6016.”
“Later in the year, we eventually expect a turn back lower and an eventual sustained break below 6.4446/6.4236 would open up the next key support at 6.3871, before an eventual move back to the 78.6% retracement of the entire 2014/2019 surge and the 2018 low at 6.2843/6.2431.”
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