USD/CNH may rise 186 - 278 pips

Our pivot point stands at 7.1164.

Our preference

The upside prevails as long as 7.1164 is support.

Alternative scenario

The downside breakout of 7.1164 would call for 7.1010 and 7.0918.

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 7.1268 and 7.1306). Finally, the USD/CNH is trading above its upper Bollinger band (standing at 7.1326).

Supports and resistances

7.1813 **

7.1721 *

7.1629 **

7.1537

7.1351 last

7.1225

7.1164 **

7.1010 *

7.0918 **

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