USD/CNH may rise 188 - 279 pips

7.0739 is our pivot point.

Our preference

The upside prevails as long as 7.0739 is support.

Alternative scenario

The downside breakout of 7.0739 would call for 7.0585 and 7.0494.

Comment

The RSI is above its neutrality area at 50. 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 7.0847 and 7.0765).

Supports and resistances

7.1341 **

7.1249 *

7.1158 **

7.1067

7.0879 last

7.0799

7.0739 **

7.0585 *

7.0494 **

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