Pair Won’t Keep Bearish Continuation Pattern above 6.4950

Analyzing the movement of the Chinese yuan, economists say that the USD/CNY has already completed a fresh bearish continuation pattern for a break to new lows for the year. The pair is forecast to carry on falling toward the 6.2843-6.2431 zone. 

USD/CNY is not expected to preserve the bearish continuation pattern above the 6.4950 mark. The pair has drastically slid over the past week and, in doing so, followed through the bearish continuation pattern recently outlined by analysts. This inspired them to turn their bias even lower. 

The USD/CNY pair has already approached the next important support mark at 6.3871. Analysts predict that this support level will soon be broken, which will allow the pair to retreat to the 78.6% retracement of the entire 2014/2019 jump. USD/CNY is also foreseen to revisit the 2018 low at 6.2843/6.2431. The latter is thought to be a tough barrier. A level above 6.4950 would be too far to enable the preservation of the bearish continuation pattern, analysts say.