EUR/CNH to extend its bounce towards 7.44/7.46 on a break above 7.31 – SocGen

EUR/CNH has rebounded from projections of 7.0800. Economists at Société Générale expect to see further gains on acceptance above the January peak at 7.3050/7.3100.

Graphical levels of 7.1500 should cushion

“The pair is now probing the interim hurdle of January peak at 7.3050/7.3100. An initial pullback is not ruled out however graphical levels of 7.1500 should cushion.” 

“If the pair can cross above 7.3050/7.3100, the bounce could extend towards 7.3790, the 23.6% retracement from 2020 and the upper limit of the channel at 7.4400/7.4600. This could be a significant resistance zone.”