The recent downward trend of the USD / CNH stopped after finding support almost 7.16, with a modest rebound that takes place now. However, the increase can remain limited for the moment, because the rupture below 7.16 can prolong the downward trend, the note of general company FX analysts.
Lower break 7.16 can trigger a drop towards 7.10 / 7.08
“The USD / CNH decline has stalled after adjusting a provisional low duration almost 7.16 last month. A brief rebound takes shape after this test. The pair progressively progresses to a recent pivo and the 50-DMA nearly 7.26, which could be a provisional resistance.”
“If the rebound is destroyed near this obstacle, the correction phase can resume. The rupture below 7.16 can extend the downward trend towards the ascending trend line traced since 2023 to 7.10 / 7.08.”
