USD/CNY: Sustained move above 6.8475 to clear the way towards the 7.00 level – Credit Suisse

USD/CNY is nearing the 6.8475 mark. A break above here would open up the 6.9957/7.0000 region, economists at Credit Suisse report.

Fall back below 6.6870 to raise a question mark over further strength

“We still expect a move to our core objective at the 61.8% retracement of the 2019/2022 downtrend and the ‘neckline’ to the 2020 top at 6.8475/94. While this could prove a strong barrier to cross given the already steep advance, medium-term momentum remains strong and thus we believe a sustained break above this level is likely, which would trigger a move to the 78.6% retracement at 6.9957/7.0000 in due course.”

“A fall back below the last week’s low at 6.6870 would raise a question mark over further strength and would see scope for a lengthier pause to emerge.”