USD/CNY threatens a bullish continuation pattern after surprising PBoC cut – Credit Suisse

USD/CNY has helped to reinforce the broader USD rally and has moved higher following weak Chinese data and a surprise People’s Bank of China (PBoC) cut, with the pair close to confirming a bullish continuation pattern, analysts at Credit Suisse report.

Break above the 6.8110 high to confirm a move to 6.8475

“USD/CNY has edged higher over the past few weeks and the market looks close to completing a bullish ‘triangle’ continuation pattern following the weak Chinese data and surprise PBoC cut.” 

“Above the 6.8110 high should confirm a move to the 61.8% retracement of the 2020/21 decline at 6.8475. A sustained break above here would see resistance next at the 78.6% retracement at 6.9957.”