USD/CNH rebounds toward 7.26 resistance after testing 7.16 – Société Générale

FXStreet Insights Team FXStreet

USD/CNH’s recent downtrend has paused after finding support near 7.16, with a modest rebound now unfolding. However, upside may remain limited for now, as break below 7.16 can extend the downtrend, Société Générale's FX analysts note.

Break below 7.16 might trigger a drop towards 7.10/7.08

"USD/CNH decline has stalled after carving out an interim low near 7.16 last month. A brief rebound is taking shape after this test. The pair is gradually inching towards recent pivo high and the 50-DMA near 7.26, which could be an interim resistance."

"If the bounce peters out near this hurdle, the phase of correction may resume. Break below 7.16 can extend the downtrend towards the ascending trend line drawn since 2023 at 7.10/7.08."

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FXStreet Insights Team

FXStreet

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