Société Générale with technical analysis charts on AUD/USD and EUR/USD, via eFX
AUD/USD has formed a weekly hammer near 0.72 which represents 76.4% retracement of 2008-2011 up move, notes SocGen.
"It is at the upper limit of a descending channel since May and is
facing immediate resistance at 0.7450. With daily RSI breaching above a
resistance trend, a recovery is likely," SocGen adds.
"A break above 0.7450 will mean a retest of recent lows at 0.7560/90 which remains pivotal for an extended rebound," SocGen argues.
Turning to EUR/USD, SocGen notes that it has retraced after testing 34 week MA at 1.12.
"EUR/USD is forming a triangle after retracing from 1.1450/1.1536. Weekly RSI is below 50% graphical level which highlights persistence within triangle," SocGen adds.
"Triangle upper limit at 1.1385/1.14 should provide strong
resistance to a recovery while 1.0865/1.08 decides if retest of
1.05/1.04 happens," SocGen projects.
