The Canadian dollar suffered from oil prices and is a clear “risk†currency. The yen is the ultimate “safe haven†and the euro is usually a safe haven, but not exclusively. And what do the charts say? Here are the views from SocGen:
Here is their view, courtesy of eFXnews:
In an accelerated up move, USD/CAD has achieved its advocated target of 1.45 after breaching above a massive upward channel, notes SocGen Techs.
“In the process the pair has confirmed a double bottom and has crossed above ultimate retracement level (76.4% at 1.45) of 2002-2007 down move. Projected target for the pattern stands at 1.59/1.62 which also corresponds with 2002 highs.
If we drop down to daily chart, the pair has broken above a multi month ascending channel which points towards continuation in up move. The pair is likely to head higher initially towards 1.4690 with next target 1.4945/1.50, a projection for the up move. Monthly RSI is now testing a graphical ceiling which suggests possibility of retracement once 1.4945/1.50 levels are achieved.
Short term pullback is likely to be cushioned at 1.42 while multiyear channel at 1.38/1.3760 will be a key support,†SocGen projects.
Turning to EUR/UD, SocGen thinks that a break above the short term descending channel limit around 1.1060/85 would decide if the current recovery extends.Â
“EUR/USD has been tracing a H&S at pivotal support of 1.05, confluence of multi-decade channel and down sloping one since 08.
The pair faced resistance at highs of March’15 at 1.1060/85 where it is forming the right shoulder of a H&S. Only a move above will indicate possibility of further rebound,†SocGen adds.
Fianlly in USD/JPY, SocGen thinks that the pair is approaching towards neckline of weekly H&S pattern around 116.
“After facing resistance at multiyear trend (126), USD/JPY is evolving within a H&S formation. The pair recently violated multi month channel and is approaching towards neckline at 116.
A break below will confirm a deeper correction towards September 2014 highs of 110 with intermittent target at 114. 123.70 should cap upside,†SocGen argues.
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