USD/CNH: Holding above 6.35 is critical to avoid a sharp decline – SocGen

USD/CNH has consistently struggled to reclaim the 200-day moving average (DMA) at 6.47 which has resulted in retraction of all the gains since May. Economists at Société Générale expect the pair to suffer a deep fall on a break below the 6.35 key support.

USD/CNH to stage a meaningful uptrend above the 200-DMA at 6.4650/6.4700 

“The low formed earlier this year near 6.3500 remains a crucial support.”

“An initial rebound can’t be ruled out towards daily Kijun line at 6.4250.” “Reclaiming the 200-DMA at 6.4650/6.4700 is critical for a meaningful uptrend.”

“In the event the pair breaks below 6.3500, next potential support levels could be at projections of 6.3200 and 6.2940.”