Chartbook: Chart USD/CNH: Retracing the strong 2023 rally

Topped out at the 7.3100 high at the start of Q3 and steep drop from there has since retraced all of the gains from the January low and more. The break of the 7.1000 level opens up deeper pullback to retrace strong gains seen in 2023.  

Nearby see room to the 7.0340, 50% Fibonacci retracement and equality measuring target of the 2023 losses from the 7.3680 high. Break here will see scope to the strong support at the 7.0000 figure where reaction can be expected. However, bearish structure suggest room for further losses in the coming months with break opening up deeper pullback to the 6.9550, 61.8% Fibonacci retracement. Lower still, will see scope to the 6.9000 level.

Meanwhile, resistance at the 7.1000 congestion and December low is expected to cap bounce attempts. Gains above this, if seen, will delay bears and see room for stronger correction to the strong resistance at the 7.1400 level and extending to the 7.1650, May low.