USD/CNH extends decline toward 2024 lows – Société Générale

💡 DMK Insight

USD/CNH just hit a 2024 low at 6.96, and here’s why that matters: The break below the lower boundary of the descending triangle signals a bearish trend, which could lead to further declines if no rebound occurs soon. Traders should be cautious, as this pattern often precedes continued selling pressure. With the lack of clear reversal signals, short positions might be tempting, especially if the pair tests lower support levels. Keep an eye on economic indicators from China and the U.S. that could influence this pair, as any shifts could trigger volatility. On the flip side, if USD/CNH finds support around this level and shows signs of a reversal, it could present a buying opportunity for those looking to capitalize on a potential bounce. Watch for any news or data releases that could impact market sentiment, particularly around the 6.90 level, which could act as a psychological barrier.