EUR/CNH may fall 184 - 184 pips

Our pivot point stands at 7.85.

Our preference

The downside prevails as long as 7.85 is resistance.

Alternative scenario

Above 7.85, look for 7.86 and 7.87.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 7.86 and 7.88). Finally, the EUR/CNH has penetrated its lower Bollinger band (7.83).

Supports and resistances

7.87 **

7.86 *

7.85 **

7.84

7.83 last

7.81

7.81 **

7.80 *

7.79 **

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