USD/CNH may fall 109 - 164 pips

7.2597 is our pivot point.

Our preference

The downside prevails as long as 7.2597 is resistance.

Alternative scenario

The upside breakout of 7.2597, would call for 7.2688 and 7.2743.

Comment

The RSI is below its neutrality area at 50. 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 7.2583).

Supports and resistances

7.2743 **

7.2688 *

7.2597 **

7.2561

7.2513 last

7.2404

7.2349 **

7.2295 *

7.2240 **

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