On the macro front, SocGen argues that the fair value for the EUR/USD would be around 1.23.
Such a value, according to SocGen, may be too much to expect but still thinks that we’ll see the EUR/USD test the top end of its 1.03-1.17 range at some point in 3Q/4Q.
On the the technical front, SocGen notes that EUR/USD confirmed an inverse head and shoulders pattern earlier this week, and approached an intermittent target at 1.0940/85, the 61.8% retracement from last November’s highs.
"Being able to hold above 1.0670 and, more importantly, the daily channel lower bound at 1.0610 should be pivotal for the EUR/USD uptrend to persist," SocGen adds.
Such a setup, according to SocGen, suggests that the pair looks headed towards 1.1130, and then towards the potential of the pattern at 1.13.
Source: Bloomberg
Trader Bozhidar Arabadzhiev
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.