USD/CNY to see a move lower to the 2019 low at 6.6691 – Credit Suisse

USD/CNY is gapping sharply lower as the market reinforces its major top. Economists at Credit Suisse expect the pair to post another leg lower with the next support awaiting at the 2019 low of 6.6691. 

Key quotes

“USD/CNY’s corrective strength in September found a cap as expected at the ‘neckline’ to its large ‘double top’, gapping sharply lower and resuming its clear medium-term downtrend. We, therefore, maintain our downside bias and see scope for a more significant move lower, with support seen next at the 2019 low at 6.6691.” 

“Bigger picture, the ‘measured top objective’ can be found much lower at 6.4965.” 

“We ideally look for the 6.8476 breakdown point to cap the market.”