USD/CNY TO HOLD BELOW 200-DMA AT 6.9022 AND A MOVE INTO A NARROW, LOWER-LEVEL RANGE – CREDIT SUISSE

USD/CNY has strengthened sharply over the past few weeks to the 200-Day Moving Average (DMA), which analysts at Credit Suisse expect to act as the range top.

Key support is seen at 6.6965/10

“The market has now reached key resistance at 6.9022, which is the 200-DMA. We look for a hold below here and a move into a narrow, lower-level range, however we note that a break would open up 6.9982/7.0000, where we would have even more confidence in a cap if reached.” 

“Key support is seen at 6.6965/10, then 6.6394, which should act as the range bottom. If this level is broken though, this would trigger a further setback toward 6.5220, where the 78.6% retracement can be identified. This though is not our base case for now.”