Chartbook: Chart USD/CNH: Consolidation expected to give way to bear extension

Bearish start to the year saw break the 6.9710 support to extend sharp losses from the 7.4290, April 2025 year high. Losses has posted fresh year low at 6.8270 low before stabilising and turning higher to consolidate at the 6.8700, 50% Fibonacci level.

Consolidation is expected to give way to renewed selling pressure later and lower will see room to extend losses to the 6.8000 figure. Would expect reaction at the latter but a later break will further retrace the 2022/2025 rally and see room for extension to the 6.7350, 61.8% Fibonacci level. Lower still, will turn focus to the 6.7000 figure and 2023 year low. 

Meanwhile, resistance at the 6.9400/6.9500 congestion area is expected to cap. Only above here will open up room for stronger corrective bounce to strong resistance at 6.9710/7.0000, the 2024 year low and psychological level. The latter is expected to cap and sustain losses from the 7.4290, 2025 year high.