USD/CNH: Race higher to persist on a move above 7.12 – SocGen

Economists at Société Générale analyze USD/CNH technical outlook.

Recent pivot low at 7.05 should provide support

“USD/CNH has extended its phase of rebound after breaking out from the range since February. It has achieved projections near 7.11/7.12. An initial pullback is expected however recent pivot low at 7.05 should provide support.”

“If the pair establishes above 7.12, the up move could persist towards next potential hurdles at 7.17 and 7.22, the 76.4% retracement from last year.”

See: China’s expanding trade surplus with the US should encourage a stronger CNY and weaker USD – MUFG