USD/CNH breaks lower as downtrend accelerates – Société Générale

USD/CNH has extended its decline after breaking below the lower boundary of a multi-month descending channel, reinforcing the broader bearish trend, Société Générale's FX analysts note.

RMB strength persists despite stretched conditions

"USD/CNH has extended its decline after breaking below the lower boundary of a multi-month descending channel. While the downtrend appears stretched, there are still no clear signals of a meaningful rebound."

"The pair looks poised to head gradually towards next objectives at the lower limit of the descending channel drawn since August at 7.01/7.00, followed by 2024 trough near 6.97. If a short-term bounce develops, the 50-DMA near 7.09/7.10 is likely to provide resistance."