USD/CNY to target 7.4220 as momentum remains strong – Credit Suisse

USD/CNY has only temporarily breached the key highs at 7.1580/7.1844. Nevertheless, analysts at Credit Suisse stay bullish for 7.4220.

Cluster of key supports located at 6.9053/6.8728

“We look for an eventual solid close above 7.1844 to provide a foundation for a deeper ascent to the 61.8% retracement at 7.4220, though we note that only a convincing break above here would raise a prospect of a stronger upmove to the 78.6% retracement at 7.7978.”

“There is a cluster of key supports at the 55-day average, potential uptrend and cluster of retracement levels including the 38.2% retracement of the 2022 upmove, which all coincide at 6.9053/6.8728. A closing break below here would cast serious doubt over the core bullish uptrend, however, a break below the August lows at 6.7232 is needed to point towards a potential top.”