USD/CNH may fall 110 - 164 pips

Our pivot point stands at 7.2679.

Our preference

Target 7.2435.

Alternative scenario

Above 7.2679, look for 7.2771 and 7.2825.

Comment

The RSI is below 50. The MACD is below its signal line and positive. The MACD must penetrate its zero line to expect further downside. Moreover, the price is below its 20 period moving average (7.2606) but above its 50 period moving average (7.2587).

Supports and resistances

7.2825 **

7.2771 *

7.2679 **

7.2643

7.2599 last

7.2489

7.2435 **

7.2380 *

7.2326 **

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