USD/CNY has triggered a bearish continuation pattern and broken to new 2021 lows. Economists at Credit Suisse expects the pair to fall as low as 6.4231, the 2018 low.
USD/CNY to end bearish pattern above 6.50
“USD/CNY has recovered slightly over the past week and a half and shifted into a tight range over the past couple of days, but the pair maintains a bearish continuation pattern, which turned our bias lower.”
“We stay biased towards a move to the next key support at 6.3871, before an eventual move back to the 78.6% retracement of the entire 2014/2019 surge and the 2018 low at 6.2843/6.2431, which we expect to prove a tough barrier.”
“Back above 6.50 would be too far to maintain the bearish continuation pattern.”
