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Offshore Yuan Extends Gains, USD/CNH Sinks Through 50-DMA

CNH

Spot USD/CNH extends losses and proves the water below its 50-DMA, which stayed intact since mid-February. In the absence of notable domestic headlines, the move has been driven by renewed greenback weakness, with the BBDXY index sitting ~0.9% lower on the session. USD/CNH last trades at CNH6.8317, down 1,081 pips or 1.56% on the day. A close under Mar 1 low of CNH6.8634 would mark the completion of a double top formation, which would be reinforced by a sustained move through the 50-DMA, suggesting that bears are having the upper hand.

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