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6 Jun 2014
EUR/USD: Further downside still expected - SocGen
FXStreet (Bali) - Despite the vigorous bounce in the EUR/USD post ECB, Sebastien Galy, Senior FX Strategist at Societe Generale, still favours further downside.
Key Quotes
"EUR/USD has completed a corrective rebound at 1.40/1.4040 where it tested the confluence of a multi-year trend line resistance and the upper limit of a rising wedge. It has broken below two multi-month trend-line support levels and has confirmed a double top."
"Weekly RSI has also broken through dual graphical support pointing towards further correction. So long as the pair is under resistance at 1.3830/80, the correction should continue and it can even extend on a break below 1.3476/20 towards 1.3240/10."
Key Quotes
"EUR/USD has completed a corrective rebound at 1.40/1.4040 where it tested the confluence of a multi-year trend line resistance and the upper limit of a rising wedge. It has broken below two multi-month trend-line support levels and has confirmed a double top."
"Weekly RSI has also broken through dual graphical support pointing towards further correction. So long as the pair is under resistance at 1.3830/80, the correction should continue and it can even extend on a break below 1.3476/20 towards 1.3240/10."