USD/CNH may fall 180 - 266 pips

7.1352 is our pivot point.

Our preference

The downside prevails as long as 7.1352 is resistance.

Alternative scenario

Above 7.1352, look for 7.1495 and 7.1581.

Comment

The RSI is below 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 7.1284 and 7.1249). Finally, the USD/CNH is trading below its lower Bollinger band (standing at 7.1209).

Supports and resistances

7.1581 **

7.1495 *

7.1352 **

7.1296

7.1175 last

7.0995

7.0909 **

7.0824 *

7.0739 **

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