USD/CNH may rise 83 - 116 pips

Our pivot point stands at 7.1843.

Our preference

As long as 7.1843 is support look for 7.2027.

Alternative scenario

The downside breakout of 7.1843 would call for 7.1787 and 7.1753.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is below its signal line and positive. The pair could retrace. Moreover, the price is above its 20 and 50 period moving average (respectively at 7.1810 and 7.1649).

Supports and resistances

7.2095 **

7.2061 *

7.2027 **

7.1994

7.1911 last

7.1866

7.1843 **

7.1787 *

7.1753 **

Number of asterisks represents the strength of support and resistance levels.