USD/CNY: Weakness is seen as corrective, rise towards 6.8475 expected – Credit Suisse

USD/CNY is correcting lower from just ahead of 6.8475/94. However, economists at Credit Suisse expect the pair to resume its uptrend in due course.

Break below 6.5794/6.5440 to open the door towards 6.5117/6.4967

“USD/CNY points toward a temporary correction and we thus expect that further downside is likely to take place in the near-term. However, with key moving averages still rising, we expect support at 6.5791/5440 to hold to keep the risks higher in the medium term and still anticipate a move to 6.8475 in due course.”

“A fall below the 50% retracement of the March/May surge at 6.5794/6.5440 would seriously question our medium-term bullish outlook and open the door to the late April low and the 61.8% retracement at 6.5117/6.4967.”