USD/CNH struggles below 50-DMA resistance near 7.28 – Société Générale

USD/CNH remains under pressure after failing to reclaim the 50-DMA, with downside risks intensifying should the 7.18 support give way, Société Générale's FX analysts note.

Momentum stalls as pair tests interim floor at 7.18

"USD/CNH breached the lows of March resulting in a deeper pullback towards an interim low near 7.18 formed earlier this month. A brief rebound has materialized however the pair has so far failed to overcome the 50-DMA near 7.27/7.28. This is a short-term resistance zone."

"If the bounce peters out near this hurdle, the phase of decline could extend. Below 7.18, next objectives could be located at projections of 7.14 and 7.11/7.10."