USD/CNH fails to sustain break above 7.37 – Société Générale

USD/CNH's attempt to break above key resistance at 7.37 lost traction, with the pair retreating sharply after hitting 7.43. Now trading below its 50-day moving average, the currency risks further losses unless it can reclaim 7.32 in the short term, Société Générale's FX analysts note.

Resistance at 7.43 halts upward momentum

"USD/CNH attempted a break beyond crucial graphical hurdle of 7.37 earlier this month, however, the upward momentum failed to regain. The pair faced strong resistance at 7.43 and quickly re-integrated within previous range. It has now dipped below the 50-DMA."

"Last week high of 7.32 is short-term hurdle. Inability to overcome this can result in persistence of down move towards March low of 7.21/7.20 and 7.18."