USD/CNH may fall 109 - 162 pips

Our pivot point stands at 7.2584.

Our preference

The downside prevails as long as 7.2584 is resistance.

Alternative scenario

Above 7.2584, look for 7.2673 and 7.2727.

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 is trading under both its 20 and 50 period moving average (respectively at 7.2554 and 7.2584).

Supports and resistances

7.2727 **

7.2673 *

7.2584 **

7.2549

7.2508 last

7.2399

7.2346 **

7.2293 *

7.2240 **

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