Chartbook: Chart USD/CNH: Room for deeper pullback from 7.3750 high

Stalled on retest of the October 2022 year high at 7.3750 in late-December 2024 and 3 February this year. Subsequent pullback from these highs has seen losses to consolidate at the 7.2350 support and threatens break here to confirm a double top pattern at the highs. 

Break will open up room for deeper pullback to retrace rally from the September low to strong support at the 7.2000 figure as well as the previous 2019 and 2020 year highs. While reaction here is expected, scope is seen for a later break to open up room for extension to the 7.1500 congestion then the 7.1000 level and trend line support from the January 2023 year low. Below the latter will return focus to the downside for retest of the 7.0000 psychological level and the 6.9710, September 2024 year low.

Meanwhile, resistance is lowered to the 7.3000 congestion which extend to the 7.3100, July 2024 year high. This area now expected to cap and sustain losses from the 7.3750 high. Break of the latter, but not expected, will see scope to the 7.4000 figure.