USD/CNH may fall 179 - 264 pips

Our pivot point stands at 7.1508.

Our preference

The downside prevails as long as 7.1508 is resistance.

Alternative scenario

The upside breakout of 7.1508, would call for 7.1652 and 7.1737.

Comment

The RSI is below its neutrality area at 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 7.1402 and 7.1409).

Supports and resistances

7.1737 **

7.1652 *

7.1508 **

7.1452

7.1378 last

7.1199

7.1114 **

7.1028 *

7.0943 **

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