USD/CNH may rise 199 - 291 pips

7.0739 is our pivot point.

Our preference

The upside prevails as long as 7.0739 is support.

Alternative scenario

Below 7.0739, expect 7.0586 and 7.0494.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 7.0715 and 7.0693).

Supports and resistances

7.1346 **

7.1255 *

7.1164 **

7.1072

7.0873 last

7.0799

7.0739 **

7.0586 *

7.0494 **

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