Chartbook: Chart USD/CNH: Extending losses from April high
Break of the 7.1500 support in Q3 has seen prices extending sharp losses from the 7.4290 April high to reach trendline from the January 2023 year low at 7.1200
Break of the 7.1500 support in Q3 has seen prices extending sharp losses from the 7.4290 April high to reach trendline from the January 2023 year low at 7.1200.
Break here and the 7.1000 level will open up room for deeper pullback to retrace the 2023/2025 gains and shift focus to the 7.0000 psychological level. Would expect reaction at the latter but a later break cannot be ruled out to open up room to the strong support at the 6.9780/6.9710, 61.8% Fibonacci level and September 2024 year low. Losses through here will see further extension to 6.9000 level.
Meanwhile, resistance is lowered to the 7.1500 congestion and this extend to the 7.2000/7.2200 area which is expected to cap and contain corrective bounce. Break, if seen, will open up room for stronger corrective bounce to the 7.2800/7.3000 congestion area.