USD/CNH may rise 110 - 164 pips

7.2605 is our pivot point.

Our preference

The upside prevails as long as 7.2605 is support.

Alternative scenario

The downside breakout of 7.2605 would call for 7.2515 and 7.2462.

Comment

The RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 7.2652 and 7.2636). Finally, the USD/CNH has crossed above its upper Bollinger band (7.2681).

Supports and resistances

7.2957 **

7.2904 *

7.2851 **

7.2797

7.2687 last

7.2640

7.2605 **

7.2515 *

7.2462 **

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