USD/CNY poised to break below key support at 7.0557 – Credit Suisse

USD/CNY is trading at 7.0760, representing a 0.12% gain on the day, but remains under pressure as is ready to break the below the key 7.0557 support which would represent a price top on a closing basis, per Credit Suisse.

Key quotes

“USD/CNY is under pressure in the near-term and this leaves the market crucially poised above key support at 7.0557/0470 – the late April and current June lows, 38.2% retracement of the rally from January and the 200-day average.” 

“With daily RSI momentum already holding a top and weekly MACD momentum now also turning lower, the 7.0557/0470 support is seen at risk and a closing break would see a price top established to warn of a more important move lower, with support then seen next at 7.0301, ahead of 7.0092 and then the medium-term uptrend from the 2018 low and 61.8% retracement at 6.9793/9690.”