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USD/CNY has resumed its downmove, trading just above the 6.90 mark, and economists at Credit Suisse remain biased lower within the broad range, with support seen at the 6.8242 July low. A break below here would mark a relevant double top.

Key quotes

“USD/CNY has resumed its downmove since breaking below the 61.8% retracement of Q1 surge and July low at 6.9694/51, 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. However, it is worth noting that a break below here at any stage would complete a much larger and more important ‘double top’.” 

“We ideally look to hold below 7.0279 to maintain the downside pressure.”