USD/CNH may rise 191 - 283 pips

Our pivot point stands at 7.0855.

Our preference

As long as 7.0855 is support look for 7.1270.

Alternative scenario

The downside breakout of 7.0855 would call for 7.0701 and 7.0609.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is below its signal line and positive. The pair could retrace. Moreover, the price is above its 20 and 50 period moving average (respectively at 7.0899 and 7.0691).

Supports and resistances

7.1453 **

7.1361 *

7.1270 **

7.1178

7.0987 last

7.0915

7.0855 **

7.0701 *

7.0609 **

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