EUR/CNY: Pull back coming? - Natixis
Since the daily stochastic for EUR/CNY cross is close to the overbought territory, Micaella Feldstein, Research Analyst at Natixis, suggests that they cannot rule out a pull back to 7.7505 (daily Bollinger moving average) even to a support at 7.72 (9month moving average).
“These dips would enable the cross to gather momentum ahead of new rallies: the buy signal on the weekly stochastic indeed pleads for further rise in the next sessions.”
“Against this backdrop, we recommend keeping a lookout at the resistance at 7.8560 (upper band of the bearish channel in place since August 17). The break of this barrier would provide fresh bullish momentum, flagging 7.9544 (weekly Bollinger upper band) and 8.0080 (monthly parabolic) as targets. The supports are at 7.7505-7.77, at 7.72, at 7.6840-7.6950 and at 7.6360.”