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USD/CNY has completed a fresh bearish continuation pattern for a break to new lows for the year. Economists at Credit Suisse expect the pair to extend its fall toward the 6.2843/6.2431 region.

USD/CNY unable to maintain the bearish continuation pattern above 6.4950

“USD/CNY has fallen sharply over the past week, finally following through on the recently highlighted bearish continuation pattern, which turned our bias lower.”

“The pair has now reached the next key support at 6.3871, which we expect to be broken to open up an eventual move back to the 78.6% retracement of the entire 2014/2019 surge and the 2018 low at 6.2843/6.2431, which we expect to prove a tough barrier.”

“Above 6.4950 would be too far to maintain the bearish continuation pattern.”