Looking at the technical charts, what’s next for EUR/USD after the breach of 1.10? And what’s next for AUD/USD which is trading in range?
Here are some answers from SocGen:
Here is their view, courtesy of eFXnews:
The downtrend that started in 2008 for the EUR/USD is now accelerating after previous lows of 1.1660/1.1875 gave in, notes SocGen.
“The pair has given a break below a multiyear descending channel and is poised to drift further. Monthly RSI is hitting an extreme however, signs that stabilization is still lacking. The pair is now headed towards 1.08, a projection for the ABC correction and probably even towards the multiyear channel at 1.05,” SocGen projects.
In AUD/USD, SocGen notes thar its rebound since testing dual channel support seems to be facing stiff resistance near 0.7960.
“With the daily indicator at resistance, the recovery looks to be capped,” SocGen argues.
“The pair is poised for a deeper downtrend towards the decadal channel at 0.72, as well as the 76.4% retracement from 2008 lows. 0.7960 will determine if the rebound can extend,” SocGen projects.
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