Home EUR/USD: Fair Value & Next 2 Technical Targets – SocGen
Daily Look

EUR/USD: Fair Value & Next 2 Technical Targets – SocGen

EUR/USD  redefined its range after the French elections, settling on higher ground. What’s next? Here is the view from SocGen:

Here is their view, courtesy of eFXnews:

Societe Generale FX Strategy Research outlines its EUR/USD outlook from a macro and valuation perspective and from a  technical front.

On the macro front, SocGen argues that based on the outlook for German real yields and Treasury yields,  fair value for the EUR/USD would be around 1.23.

Such a value, according to SocGen, may be too much to expect but still thinks that  we’ll see the EUR/USD test the top end of its 1.03-1.17 range at some point in 3Q/4Q.

On the the technical front, SocGen notes that EUR/USD confirmed an inverse head and shoulders pattern earlier this week, and approached an intermittent target at 1.0940/85, the 61.8% retracement from last November’s highs.

“Being able to hold above 1.0670 and, more importantly, the daily channel lower bound at 1.0610 should be pivotal for the EUR/USD uptrend to persist,” SocGen adds.

Such a setup, according to SocGen, suggests that the pair looks headed towards 1.1130, and then towards the potential of the pattern at 1.13.

EUR/USD is trading circa 1.09 as of writing.

For lots  more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting  Forex Crunch.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.