USD/CNH to extend its uptrend on a break above 7.26 – SocGen

USD/CNH has staged a rebound from interim low of 7.01 formed earlier this month. The pair could extend its rally on a break past the September high near 7.26, economists at Société Générale report.

A short-term pause is expected

“The pair is now in vicinity to the peak of September near 7.26. A short-term pause is expected however signals of a deeper pullback are not yet visible. 7.01 should be an important support.”

“If the pair establishes itself beyond 7.26, the uptrend is likely to extend towards next projections of 7.33/7.37 and 7.49.”