USD/CNH may fall 216 - 316 pips

Our pivot point is at 7.1104.

Our preference

The downside prevails as long as 7.1104 is resistance.

Alternative scenario

The upside breakout of 7.1104, would call for 7.1273 and 7.1374.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). 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 7.1053 and 7.1168).

Supports and resistances

7.1374 **

7.1273 *

7.1104 **

7.1038

7.0954 last

7.0738

7.0638 **

7.0537 *

7.0437 **

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