USD/CNH pressures key 7.16 support – Société Générale
|USD/CNH remains under pressure after surrendering its 50-DMA in May, with bearish momentum persisting. The pair is testing key support at 7.16, and a decisive break lower could open the door to deeper losses toward 7.13 and 7.10, Société Générale's FX analysts note.
The phase of downtrend may extend
"USD/CNH gave up the 50-DMA in May resulting in a steady decline. The down move tentatively stalled after carving out an interim low near 7.16. The pair is now challenging this support. If USD/CNH establishes below 7.16, the phase of downtrend may extend."
"Next objectives could be located at 7.13 and the ascending trend line drawn since 2023 at 7.10/7.09. Cross above the MA at 7.20/7.21 is crucial for confirming a short-term up move."
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