USD/CNH struggles to break 50-DMA at 7.12 – Société Générale

USD/CNH faces downward pressure after failing to clear 7.12, with technical patterns pointing to a possible drop toward 7.05–7.01 if key support at 7.08 gives way, Société Générale's FX analysts note.

MACD confirms persistent bearish momentum

"USD/CNH has failed to establish beyond the 50-DMA near 7.12 in recent bounce attempt denoting prevalence of downward momentum. This is also highlighted by the daily MACD which remains anchored within negative territory."

"The pair has evolved within a pattern resembling a descending triangle and is drifting towards the lower limit at 7.08. Failure to defend this may lead to a deeper decline towards next projections at 7.05 and perhaps even towards 7.02/7.01."