USD/CNY remains in a clear uptrend looks set for further medium-term strength. Economists at Credit Suisse expect the pair to chllagenge the 7.4220/7.4540 resistance zone.

Fresh upside territory

“Next resistance is seen at the 61.8% retracement of the 2005/14 downtrend and the trendline from late 2016 at 7.4220/7.4540, where we would look for at least a temporary pause. Nonetheless, a convincing break above here would raise a prospect of rising all the way to the 78.6% retracement at 7.7978, where we would have greater confidence of a solid cap.”

“Whilst we look for 7.0810 to hold any abrupt leg lower, a break below would see scope to test the 55-day moving average at 7.0093, which we would expect to hold to avoid a potentially deeper correction.”