USD/CNH may rise 112 - 167 pips

Our pivot point is at 7.2547.

Our preference

The upside prevails as long as 7.2547 is support.

Alternative scenario

The downside breakout of 7.2547 would call for 7.2455 and 7.2400.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 7.2570 and 7.2565). Finally, the USD/CNH has crossed above its upper Bollinger band (7.2622).

Supports and resistances

7.2911 **

7.2856 *

7.2802 **

7.2747

7.2635 last

7.2583

7.2547 **

7.2455 *

7.2400 **

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