USD/CNY at risk of breaking below key suport at 7.0560, momentum top completed – Credit Suisse

USD/CNY is under pressure, according to strategists at Credit Suisse as the pair is trading slightly above the key support at 7.0560, currently sitting at 7.090, and a break below this level would mark a downturn.

Key quotes

“USD/CNY is under pressure in the near-term and this leaves the market crucially poised above key support at 7.0560/0470 – the late April low, low from last week, 38.2% retracement of the rally from January and the 200-day average.” 

“With daily RSI momentum already holding a top, the 7.0560 support is seen at risk and a closing break would see a price top established to warn of a more important turn lower, with next support then seen at 7.0298, ahead of 7.0091 and then the medium-term uptrend and 61.8% retracement at 6.9690.”