USD/CNH may fall 174 - 259 pips

Our pivot point is at 7.1412.

Our preference

The downside prevails as long as 7.1412 is resistance.

Alternative scenario

The upside breakout of 7.1412, would call for 7.1556 and 7.1641.

Comment

The RSI is below 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 7.1359 and 7.1440).

Supports and resistances

7.1641 **

7.1556 *

7.1412 **

7.1356

7.1294 last

7.1120

7.1035 **

7.0949 *

7.0864 **

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