USD/CNH may fall 189 - 275 pips

Our pivot point is at 7.1315.

Our preference

The downside prevails as long as 7.1315 is resistance.

Alternative scenario

Above 7.1315, look for 7.1459 and 7.1544.

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 7.1252 and 7.1252).

Supports and resistances

7.1544 **

7.1459 *

7.1315 **

7.1259

7.1203 last

7.1014

7.0928 **

7.0843 *

7.0758 **

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