USD/CNH may fall 189 - 281 pips

7.1011 is our pivot point.

Our preference

Under pressure below 7.1011.

Alternative scenario

The upside breakout of 7.1011, would call for 7.1164 and 7.1256.

Comment

The RSI is below its neutrality area at 50. The MACD is below its signal line and positive. The MACD must penetrate its zero line to expect further downside. Moreover, the price stands below its 20 and 50 period moving average (respectively at 7.0879 and 7.0860).

Supports and resistances

7.1256 **

7.1164 *

7.1011 **

7.0951

7.0856 last

7.0667

7.0575 **

7.0484 *

7.0392 **

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