USD/CNH technical analysis: Looks heavy due to Wednesday's Gravestone Doji

• USD/CNH created a Gravestone Doji on Wednesday, signaling seller exhaustion. 
• The pair risks falling to key support of 7.1125 in the short-term. 

USD/CNH is looking south, having created a gravestone Doji on Wednesday. 

The Gravestone Doji has appeared following a rally from 7.0309 to 7.16 and indicates buyer exhaustion. 

Further, the 4-hour chart is reporting a bearish divergence of the relative strength index (RSI). 

Hence, the immediate support of 7.1125 (Aug. 12 high) could come into play in the next few days. 

The bearish case would weaken if the pair closes Thursday above 7.1587, invalidating the Gravestone Doji. That would imply a continuation of the rally from recent lows near 7.03 and open the doors for a retest of recent highs near 7.20. 

Daily chart

Trend: Bearish

Technical levels