EUR/USD: The Sucker Punch After Jan’s Head-Fake: Key Levels To Watch – SocGen

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EUR/USD dropped below 1.17 in its grind to the downside. Where is the bottom? The pair continues struggling.

Here is their view, courtesy of eFXdata:

Societe Generale Cross Asset Strategy Research discusses EUR/USD outlook and highlights the key levels to the downside.

“A re-test of the EUR/USD 1.1720 level this morning saw rapid capitulation. The market is still long Euros even if the aggregate short dollar position has been cut.

Italy’s political impasse continues, French and German PMIs were soft and global risk sentiment has taken another knock. November’s 1.1550 low and the 50% retracement of the up-move at 1.1450 are the next hurdles and represent the sucker punch that has followed January’s head-fake.

The Euro needs better data, Italian political resolution (without an on-going threat of leaving the Eurozone) and better positioning. The last of these will be solved imminently but the other two are going to take time and the market isn’t waiting,” SocGen argues.

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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 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.

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