1 Mar 2016
EUR/USD: Likely to form a shooting star this month - SocGen
Research Team at Societe Generale, suggests that after having faced resistance at the upper limit of a daily ascending channel, EUR/USD is likely to form a shooting star this month.
Key Quotes
“After a sharp rebound, EUR/USD faced stiff resistance at upper limit of a daily channel. With weekly indicator close to resistance, graphical levels at 1.1440/60 will remain key hurdle.
The pair is violating the aforementioned channel support (1.10/1.1060) which is a signal that the rebound since December may have run its course. Daily RSI has already breached a similar trend support suggesting possibility of further correction. The pair is currently probing a weekly descending trend, however rebound, if any, should be contained at immediate resistance of 1.10/1.1060. A test of lows formed early February at 1.08 looks more likely. This will confirm if a revisit of last November trough at 1.0570/1.05 takes shape.”
Key Quotes
“After a sharp rebound, EUR/USD faced stiff resistance at upper limit of a daily channel. With weekly indicator close to resistance, graphical levels at 1.1440/60 will remain key hurdle.
The pair is violating the aforementioned channel support (1.10/1.1060) which is a signal that the rebound since December may have run its course. Daily RSI has already breached a similar trend support suggesting possibility of further correction. The pair is currently probing a weekly descending trend, however rebound, if any, should be contained at immediate resistance of 1.10/1.1060. A test of lows formed early February at 1.08 looks more likely. This will confirm if a revisit of last November trough at 1.0570/1.05 takes shape.”