USD/CNH may fall 205 - 296 pips

Our pivot point is at 7.0855.

Our preference

The downside prevails as long as 7.0855 is resistance.

Alternative scenario

The upside breakout of 7.0855, would call for 7.1008 and 7.1100.

Comment

The RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 7.0785 and 7.0829). Finally, the USD/CNH has penetrated its lower Bollinger band (7.0708).

Supports and resistances

7.1100 **

7.1008 *

7.0855 **

7.0795

7.0706 last

7.0501

7.0410 **

7.0319 *

7.0228 **

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