USD/CNH may rise 196 - 288 pips

Our pivot point is at 7.1234.

Our preference

The upside prevails as long as 7.1234 is support.

Alternative scenario

Below 7.1234, expect 7.1079 and 7.0987.

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 positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 7.1270 and 7.1129). Finally, the USD/CNH is trading above its upper Bollinger band (standing at 7.1390).

Supports and resistances

7.1890 **

7.1798 *

7.1706 **

7.1614

7.1418 last

7.1295

7.1234 **

7.1079 *

7.0987 **

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