USD/CNH may fall 199 - 299 pips

7.0536 is our pivot point.

Our preference

The downside prevails as long as 7.0536 is resistance.

Alternative scenario

Above 7.0536, look for 7.0704 and 7.0803.

Comment

The RSI is below 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 7.0468 and 7.0526).

Supports and resistances

7.0803 **

7.0704 *

7.0536 **

7.0470

7.0404 last

7.0205

7.0105 **

7.0005 *

6.9906 **

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