USD/CNH may rise 232 - 328 pips

Our pivot point is at 7.1172.

Our preference

The upside prevails as long as 7.1172 is support.

Alternative scenario

The downside breakout of 7.1172 would call for 7.1011 and 7.0915.

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 above its 20 and 50 period moving average (respectively at 7.1250 and 7.1237). Finally, the USD/CNH is trading above its upper Bollinger band (standing at 7.1306).

Supports and resistances

7.1833 **

7.1736 *

7.1640 **

7.1544

7.1312 last

7.1236

7.1172 **

7.1011 *

7.0915 **

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