USD/CNH may fall 110 - 163 pips

7.2604 is our pivot point.

Our preference

The downside prevails as long as 7.2604 is resistance.

Alternative scenario

Above 7.2604, look for 7.2693 and 7.2747.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 7.2569 and 7.2594).

Supports and resistances

7.2747 **

7.2693 *

7.2604 **

7.2569

7.2525 last

7.2415

7.2362 **

7.2309 *

7.2256 **

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