Euro/Yuan Finally Pushes Off Support, Getting Traction

It's been brewing for three weeks, but the EUR/CNY chart finally pushed off the support line that brought a quick end to early December's demise.

A string of barely higher highs was starting to develop a bullish resistance line to be added to the one that traced the barely higher lows (the same one that can be traced back to mid-2009). With the move to 9.90 (and a high of 9.93) on Monday though, those chains have been broken.

EUR/CNY should start to get traction from here, unwinding a modestly oversold situation. A revisit to 10.27 is a reasonable starting target.