EUR/CNH may fall 198 - 298 pips

Our pivot point is at 7.90.

Our preference

The downside prevails as long as 7.90 is resistance.

Alternative scenario

The upside breakout of 7.90, would call for 7.91 and 7.92.

Comment

The RSI is below 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 7.91 and 7.89). Finally, the EUR/CNH has penetrated its lower Bollinger band (7.89).

Supports and resistances

7.92 **

7.91 *

7.90 **

7.90

7.89 last

7.87

7.86 **

7.86 *

7.85 **

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