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23 Feb 2016
EUR/USD: Very limited upside - SocGen
Research Team at Societe Generale, suggests that the EUR/USD pair has breached above the down channel (1.1060/1.10) however indicators point to very limited upside.
Key Quotes
“Pair breached the 1.1060/1.10 resistance, the 20-week MA, the down sloping channel upper limit since May 2014 tops. However, in light of monthly and weekly indicators which are approaching multi-year resistance line, the rebound looks corrective and could find stiff resistance at graphical levels of 1.1440/1.1460 (also the 76.4% retracement of the last down leg.
Long term picture:
• Key levels at 1.1875/1.22 and 1.0570/1.05
• Broke below the 7-year triangle support (1.22)
• Pivotal level at 1.05, the 30Y upward channel and the 61.8% retracement of 2000-2008 uptrend. Break below 1.05 would mean a correction of a larger degree, towards down sloping channel at 1.0334 and 1.00/0.9930 next.”
Key Quotes
“Pair breached the 1.1060/1.10 resistance, the 20-week MA, the down sloping channel upper limit since May 2014 tops. However, in light of monthly and weekly indicators which are approaching multi-year resistance line, the rebound looks corrective and could find stiff resistance at graphical levels of 1.1440/1.1460 (also the 76.4% retracement of the last down leg.
Long term picture:
• Key levels at 1.1875/1.22 and 1.0570/1.05
• Broke below the 7-year triangle support (1.22)
• Pivotal level at 1.05, the 30Y upward channel and the 61.8% retracement of 2000-2008 uptrend. Break below 1.05 would mean a correction of a larger degree, towards down sloping channel at 1.0334 and 1.00/0.9930 next.”