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13 Mar 2015
EUR/USD downside break? – SG
FXStreet (Barcelona) - Analysts at Societe Generale, note that technicals on monthly charts support a EUR/USD downside break, expecting a move below 1.05/04 to pave way for parity and then 0.98/0.96.
Key Quotes
“EUR/USD is testing the multi decadal upward channel support at 1.05/1.04 which also happens to be a projection for the complex corrective downtrend since 2008.”
“Monthly RSI is at an extreme and suggests possibility of a downside break.”
“A clear breach of 1.05/1.04 will confirm that the extant phase of downtrend is not just a correction of the up move since 2000, but of a larger degree. In such a case, the down move will not only extend towards parity (1.00) but also towards 2001 highs of 0.98/0.96 and then to year 2000 lows of 0.84/0.82.”
“Short term upside is likely to be capped at 1.1090, while last month highs of 1.1536 will be a key resistance.”
Key Quotes
“EUR/USD is testing the multi decadal upward channel support at 1.05/1.04 which also happens to be a projection for the complex corrective downtrend since 2008.”
“Monthly RSI is at an extreme and suggests possibility of a downside break.”
“A clear breach of 1.05/1.04 will confirm that the extant phase of downtrend is not just a correction of the up move since 2000, but of a larger degree. In such a case, the down move will not only extend towards parity (1.00) but also towards 2001 highs of 0.98/0.96 and then to year 2000 lows of 0.84/0.82.”
“Short term upside is likely to be capped at 1.1090, while last month highs of 1.1536 will be a key resistance.”