USD/CNH may rise 192 - 284 pips

Our pivot point is at 7.1234.

Our preference

The upside prevails as long as 7.1234 is support.

Alternative scenario

The downside breakout of 7.1234 would call for 7.1080 and 7.0988.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (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 7.1292 and 7.1222).

Supports and resistances

7.1830 **

7.1738 *

7.1646 **

7.1554

7.1362 last

7.1295

7.1234 **

7.1080 *

7.0988 **

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