EUR/CNH may fall 140 - 240 pips

7.74 is our pivot point.

Our preference

The downside prevails as long as 7.74 is resistance.

Alternative scenario

The upside breakout of 7.74, would call for 7.75 and 7.76.

Comment

The RSI is below 50. 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 7.73 and 7.73). Finally, the EUR/CNH has penetrated its lower Bollinger band (7.73).

Supports and resistances

7.76 **

7.75 *

7.74 **

7.73

7.72 last

7.71

7.70 **

7.70 *

7.69 **

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