Watch 1.1460
Societe Generale FX Strategy Research notes that EUR/USD has marched towards the multiyear descending channel limit at 1.1460 which is also the graphical level consisting of April/May 2016 highs.
"A pause is currently under way, however this is expected to be short lived. The upward channel drawn since January at 1.1185 will be a near term support while last month's lows of 1.11/1.1043 should now be a key level.
Once a move beyond 1.1460 takes shape, the EUR/USD will head towards last year's highs in May, near 1.1619 and even towards 1.1685/1.1714," SocGen argues.
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