USD/CNY to see a move lower to the 2019 low at 6.6691 – Credit Suisse
|USD/CNY is gapping sharply lower as the market reinforces its major top. Economists at Credit Suisse expect the pair to post another leg lower with the next support awaiting at the 2019 low of 6.6691.
Key quotes
“USD/CNY’s corrective strength in September found a cap as expected at the ‘neckline’ to its large ‘double top’, gapping sharply lower and resuming its clear medium-term downtrend. We, therefore, maintain our downside bias and see scope for a more significant move lower, with support seen next at the 2019 low at 6.6691.”
“Bigger picture, the ‘measured top objective’ can be found much lower at 6.4965.”
“We ideally look for the 6.8476 breakdown point to cap the market.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.