EUR/CNH may rise 249 - 349 pips

Our pivot point stands at 7.87.

Our preference

Rise to 7.92.

Alternative scenario

The downside breakout of 7.87 would call for 7.85 and 7.85.

Comment

The RSI is below its neutrality area at 50. The MACD is positive and above its signal line. The break above the 50 area on the RSI would call for further upside. Moreover, the pair is trading under its 20 period moving average (7.89) but above its 50 period moving average (7.88).

Supports and resistances

7.94 **

7.93 *

7.92 **

7.91

7.89 last

7.88

7.87 **

7.85 *

7.85 **

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