After consolidating within a broad range since March 2015, EUR/USD is now breaching below the lower bound (1.0465) pointing towards possibility of further down move. On daily chart the pair has moved below a multi month descending channel (at 1.0465/1.0510). Daily RSI is at a higher level as compared to November trough however signs of rebound are still awaited.
Descending channel at 1.0465/1.0510 will be an immediate hurdle while 1.0665 should cap near term upside. Very short term, the pair is likely to drift towards next projections at 1.03. In the event of a break below 1.03, EUR/USD will face an extended correction towards multiyear down sloping channel limit at 1.0180 and more importantly 1.00.
GBP/USD has undergone a relentless down move after breaching key graphical levels and significant stabilization is awaited. Recent lows of 1.1752/1.1660 may provide cushion for time being. Short term, it faced resistance near 1.28/1.2870 and is undergoing a retracement.
Break of 1.2330 will signal deeper correction towards 1.2140/1.21.
*SocGen maintains a short GBP/USD position in its portfolio from 1.2590.
*This trade is recorded in eFXplus Orders.
Copyright © 2016 Societe Generale, eFXnews™Original Article
