USD/CNH tests July low at 7.14 – Société Générale

USD/CNH is hovering near the July low of 7.14, with only limited rebound potential in sight. Failure to break above 7.19 would keep the bearish trend intact, opening the door for a deeper move toward 7.11 and possibly 7.07, Société Générale's FX analysts note.

Downtrend risks extend toward 7.11/7.07

"USD/CNH is probing the July low at 7.14. While a brief rebound is possible, there are no clear signals of a sustained upward move at this stage. The last week high at 7.19 may act as a short-term resistance. If the pair fails to overcome this hurdle, the downtrend may extend."

"Break below 7.14 can trigger a deeper down move towards the trendline drawn since 2023 at 7.11 and perhaps even towards 7.07."