USD/CNH lost adhesion after it has not remained above 50-DMA, and now trades below the support of the key march, with the inability to recover 7.30 suggesting a further risk of drops compared to 7.14 and 7.10, notes FX Société Générale analytics.
Resistance at 7.30 key to limiting each reflection
“USD/CNH met with strong resistance near 7.43 last month and quickly gave up the 50-DMA. Now it was immersed below the march, meaning the recovery of momentum.”
“The couple created a temporary low level near 7.18. A short reflection cannot be ruled out, but the inability to overcome last week the highest level of 7.30 may cause a persistence of the inheritance. Another potential goals can be located on projections 7.14 and 7.10”.
