EUR/USD is sliding on Yellen’s prepared statement, but remains on high ground. Here is the technical view from SocGen:

Here is their view, courtesy of eFXnews:

Having formed trough at cluster of supports near 1.0570/1.05, EUR/USD broke above a multiyear trend at 1.1060/1.10 last week and has accelerated the recovery.

Weekly indicator still has a little room for upside before it hits a descending trend resistance suggesting a test of graphical levels at 1.1440/60 is not ruled out. However, only a durable move beyond this will mean next leg of rebound.

Short term, the pair is testing upper limit of an hourly channel at 1.1330/90. At this level, it has also met the potential for the inverted H&S confirmed earlier and an initial projection for the fifth wave on hourly chart.

Previous highs at 1.1060/1.10 will remain an important support.

 

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