EUR/CNH may rise to 7.9900 - 8.0300

Our pivot point is at 7.82.

Our preference

The upside prevails as long as 7.82 is support.

Alternative scenario

The downside breakout of 7.82 would call for 7.75 and 7.70.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 7.82 and 7.80).

Supports and resistances

8.12 **

8.08 *

8.03 **

7.99

7.90 last

7.85

7.82 **

7.75 *

7.70 **

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