USD/CNH to head lower gradually towards July trough of 7.11/7.10 – SocGen

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.