EUR/CNH may rise 177 - 277 pips

Our pivot point is at 7.86.

Our preference

Rebound towards 7.90.

Alternative scenario

The downside breakout of 7.86 would call for 7.85 and 7.85.

Comment

The RSI is below its neutrality area at 50. The MACD is negative and above its signal line. The configuration is mixed. Moreover, the price stands below its 20 and 50 period moving average (respectively at 7.88 and 7.89). Finally, the EUR/CNH is trading below its lower Bollinger band (standing at 7.87).

Supports and resistances

7.91 **

7.91 *

7.90 **

7.89

7.87 last

7.87

7.86 **

7.85 *

7.85 **

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