EUR/USD is Undergoing Broad Consolidation - SocGen
Research Team at Societe Generale, suggests that after testing key levels 1.06/1.05 last year, EUR/USD is undergoing broad consolidation.
Key Quotes
“1.06/1.05 will decide about next leg of down cycle. Short term though, it revisited February lows (1.08) and has achieved our advocated target (1.1250). It has probed last month highs of
1.1330/80; graphical level at 1.1460 will be important hurdle.
Rebound in EUR/GBP after testing key support (0.70/0.68) appears to be facing stiff resistance at multiyear channel 0.80/0.81. Ongoing recovery looks similar to previous ones in terms of timing ratios and is about to complete a typical span of seven months to a year. 0.75/0.7450 will decide about a deeper retracement
GBP/USD has breached a multiyear upward channel support (1.46) and looks headed towards graphical levels at 1.36/1.35 (lows of 1986, 2001, 2009). Long dated indicators are close hitting a floor pointing towards possibility of consolidation once these levels are achieved. 1.46/1.4670 should cap short term rebound.”
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