USD/CNH may rise 111 - 164 pips

Our pivot point stands at 7.2650.

Our preference

As long as 7.2650 is support look for 7.2889.

Alternative scenario

The downside breakout of 7.2650 would call for 7.2561 and 7.2507.

Comment

The RSI is above its neutrality area at 50. The MACD is below its signal line and positive. The pair could retrace. Moreover, the pair is trading under its 20 period moving average (7.2727) but above its 50 period moving average (7.2680).

Supports and resistances

7.2996 **

7.2942 *

7.2889 **

7.2836

7.2725 last

7.2685

7.2650 **

7.2561 *

7.2507 **

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