EUR/USD tentatively probed median of the broad range in force since 2015 at 1.0860 last week and has shown a retracement towards the lower limit of a down sloping channel at 1.0540/1.0465.
More importantly it is now close to the lower bound of aforementioned range and March 2015 lows.
Monthly RSI is near a horizontal support suggesting 1.0540/1.0465 as a crucial level. In case this gives way, EUR/USD will drift towards next significant support at 1.0180/1.00 which corresponds with the large descending channel limit, the 76.4% retracement of whole up move during 2000-2008 and projections.
Short term though, the ongoing rebound should struggle against 1.07 which will be immediate hurdle A move beyond October lows of 1.0860 remains needed for a sustainable recovery .
Copyright © 2016 Societe Generale, eFXnews™Original Article
