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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EUR
Price action has been trapped between two Fibo retracement levels over the last two weeks, as the rate has consolidated losses registered earlier this month, after charting a double top formation. The 76.4% retracement of the Nov 18 - Dec 30 rally at CNH7.8149 provided a durable layer of support on Jan 20 and the rate bounced in a short-lived recovery attempt. The 38.2% retracement of the aforementioned rally capped gains at CNH7.9131 and the pair turned its tail again.
- The rate has shed ~120 pips today and last sits at CNH7.8363, falling for the fifth consecutive day. Bears look for a clean break under the 76.4% Fibo support/Jan 20 low at CNH7.8149/46, which would shift focus to Nov 18 low of CNH7.7542, the worst level since mid-2020. Meanwhile, bulls take not of the recent move in the 50-DMA, which crossed above the 100-DMA fuelling hopes for a price reversal. A move through Jan 22 high/38.2% Fibo resistance at CNH7.9111/31 would be a welcome development for bulls, opening up Jan 6 high of CNH7.9602.
- Repeated signals from the ECB suggesting that policymakers are concerned with EUR appreciation may have helped EUR/CNH lower, at the time (i.e. since the beginning of the year) when the yuan has been the best performing currency in Asian EM space.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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