USD/CNH may fall 198 - 294 pips

7.1488 is our pivot point.

Our preference

The downside prevails as long as 7.1488 is resistance.

Alternative scenario

Above 7.1488, look for 7.1649 and 7.1746.

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 is trading under both its 20 and 50 period moving average (respectively at 7.1397 and 7.1385).

Supports and resistances

7.1746 **

7.1649 *

7.1488 **

7.1424

7.1354 last

7.1156

7.1060 **

7.0963 *

7.0867 **

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