USD/CNH may fall 175 - 260 pips

7.1400 is our pivot point.

Our preference

Target 7.1004.

Alternative scenario

The upside breakout of 7.1400, would call for 7.1543 and 7.1629.

Comment

The RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the pair is trading under its 20 period moving average (7.1298) but above its 50 period moving average (7.1250).

Supports and resistances

7.1629 **

7.1543 *

7.1400 **

7.1343

7.1264 last

7.1089

7.1004 **

7.0919 *

7.0833 **

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