USD/CNH is gradually drifting towards the low formed in May at 6.3500. A break below here would open up 6.3200 and 6.2940, economists at Société Générale report.

Break above 6.4000 is essential for denoting a short-term bounce

“The low formed in May at 6.3500 is an important support. The pair is currently forming a base, however, a break above the upper band of the multi-month descending channel at 6.4000 will be essential for denoting a short-term bounce.”

“In case the support at 6.3500 gets violated, the downtrend is likely to extend towards 6.3200 and next projections at 6.2940.”