EUR/USD: More downside to go – SocGen

By FXStreet FXStreet (Delhi) – Research Team at Societe Generale, suggests that EUR/USD appears to be forming the right shoulder of a short term H&S pattern at 1.0960/80.

Key Quotes

“The pair formed a bearish engulfing last week suggesting possibility to continue the down move. 1.1060/85 will remain an important hurdle and only a move beyond this will mean extension in recovery. 1.1170 and 1.1270 will be next resistance levels.”

“Violation of flag led EUR/USD towards previous lows and more importantly multi decadal channel at 1.05/1.04. This remains a decisive level for extension in ongoing downtrend. Short term, the pair has achieved initial target for recovery near 1.1085. Upside appears to be capped; flag limit at 1.1270 should contain it.”
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Source:: FX Street