USD/CNY: Scope for a significant leg lower towards 2019 low at 6.6691 – Credit Suisse

USD/CNY maintains a major top and the Credit Suisse analyst team stays bearish over the next three-to-six months, with major support seen at the 6.6691 2019 low.

Key quotes

“USD/CNY remains in a clear medium-term downtrend, in line with the completion of an important medium-term ‘double top’. We, therefore, maintain our downside bias over the next three-to-six months 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 6.8406 breakdown point to cap the market.”

“Above here though can see a move back to the 200-day average and psychological inflection point at 6.9956/7.0000.”