EUR/CNH may fall 144 - 244 pips

7.82 is our pivot point.

Our preference

The downside prevails as long as 7.82 is resistance.

Alternative scenario

The upside breakout of 7.82, would call for 7.84 and 7.85.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 7.82 and 7.82). Finally, the EUR/CNH is trading below its lower Bollinger band (standing at 7.81).

Supports and resistances

7.85 **

7.84 *

7.82 **

7.82

7.80 last

7.79

7.78 **

7.77 *

7.76 **

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