EUR/USD is sliding on Yellen’s prepared statement, but remains on high ground. Here is the technical view from SocGen:
Here is their view, courtesy of eFXnews:
Having formed trough at cluster of supports near 1.0570/1.05, EUR/USD broke above a multiyear trend at 1.1060/1.10 last week and has accelerated the recovery.
Weekly indicator still has a little room for upside before it hits a descending trend resistance suggesting a test of graphical levels at 1.1440/60 is not ruled out. However, only a durable move beyond this will mean next leg of rebound.
Short term, the pair is testing upper limit of an hourly channel at 1.1330/90. At this level, it has also met the potential for the inverted H&S confirmed earlier and an initial projection for the fifth wave on hourly chart.
Previous highs at 1.1060/1.10 will remain an important support.
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.
