EUR/USD: Doji Formation; USD/CHF: H&S Formation - SocGen

EUR/USD: Doji Formation; USD/CHF: H&S Formation - SocGen

10 March 2016, 11:36
Vasilii Apostolidi
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EUR/USD: After probing a multi month descending trend and early February lows of 1.08, EUR/USD embarked on a rebound. The recovery seems to be running out of steam as the pair has faced resistance at graphical level of 1.1060/1.11 which also corresponds with the 50% retracement of recent down move.

Formation of a doji at those levels suggests that the pair has failed to clearly re-integrate within a daily ascending channel. Upside is likely to remain capped as highlighted by weekly indicator which is testing a down sloping trend resistance.

Only a move beyond 1.1060/1.11 will lead to extension in rebound.

Very short term, a down move towards 1.0940 looks likely; recent lows of 1.08 will decide if a retest of December lows at 1.0570/1.05 takes shap.

USD/CHF: USD/CHF is forming a probable H&S pattern at 1.00/1.003, the 61.8% retracement from February highs.

A move towards neckline at 0.9890/50 looks on cards, a break below will mean a deeper retracement towards recent lows at 0.9750/0.97.

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