EUR/USD: A Close Above 1.2170 This Week A Trigger A Long Signal


The euro is looking for a new direction and may have chosen the upside. Will we see further gains? A lot depends on the close. Here is the view from SocGen:

Here is their view, courtesy of eFXnews:

Societe Generale Cross Asset Strategy Research discusses EUR/USD outlook and maintains the view that a close above 1.2170 this week would be a trigger for a long signal

“EUR/USD is in mid-range, but if we’re above 1.2170 on Friday evening that’s enough of a signal to get long or longer Italian political uncertainty lingers but has little or no FX effect,” SocGen argues.

Meanwhile, SocGen thinks that long AUD/NZD remains an attractive position and looks to buy AUD/USD tactically on a clear break above 0.7790.

“The RBA is held in check by soft wages (heard that before somewhere). But AUD/USD is holding 0.77 and to that extent is doing much better than CAD and GBP. A very tactical long appeals if we break 0.7790 but otherwise, long AUD/NZD remains,” SocGen adds.

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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 the 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.