USD/CNH may fall 112 - 165 pips

Our pivot point is at 7.2685.

Our preference

The downside prevails as long as 7.2685 is resistance.

Alternative scenario

The upside breakout of 7.2685, would call for 7.2774 and 7.2828.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). 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 7.2671 and 7.2700).

Supports and resistances

7.2828 **

7.2774 *

7.2685 **

7.2650

7.2609 last

7.2497

7.2444 **

7.2391 *

7.2338 **

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