USD/CNY: Medium-term momentum remains strong – Credit Suisse

USD/CNY’s surge has paused. But the core uptrend remains in place, economists at Credit Suisse report.

Near-term support remains at 6.8870/8717

“The market looks to be having a temporary pause, in line with the current correction in USD. Nonetheless, medium-term momentum remains strong and with the broader USD strength expected to resume, our bias is to eventually challenge 6.9957/7.0000, a sustained break above which would open the door to reach 7.1844 in the medium-term.”

“Near-term support remains at the recent ‘continuation gap’ at 6.8870/8717, which ideally holds any additional near-term weakness.”