USD/CNH erases 7.18. Economists at Société Générale analyze the pair’s outlook.
7.24 expected to be a short-term hurdle
USD/CNH uptrend faltered near October 2022 peak of 7.37 and it evolved within a brief consolidation. It has breached below the lower limit of this three-month range denoting potential downside.
The pair is expected to head lower gradually towards July trough of 7.11/7.10 which is also the 38.2% retracement from January.
Lower limit of previous consolidation near 7.24 is expected to be a short-term hurdle.
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