USD/CNH stalls below 50-DMA – Société Générale

USD/CNH remains capped by the 50-day moving average at 7.12 and is now testing the lower edge of its range near 7.08, with failure to break higher opening the door to declines toward 7.05 and 7.02/7.01, Société Générale's FX analysts note.

USD/CNH risks drop toward 7.05 and 7.02

"USD/CNH has consistently struggled to overcome the 50-DMA in recent rebound attempt highlighting a lack of steady upward momentum. It is at the lower limit of recent range at 7.08."

"A brief up move cannot be ruled out however inability to cross the moving average at 7.12 may lead to continuation in decline. Below 7.08, the next objectives could be located at projections of 7.05 and 7.02/7.01."