Societe Generale on Forex majors
EUR/USD: The pair achieved initial target of 1.40 and has confirmed a double top. It has breached a multi month trend line support. With weekly RSI breaking dual support, correction in the pair will extend on break below 1.35/1.3476. Upside should be capped at 1.3796/1.3807. For the day, 1.3653/73 should limit the upside.
GBP/USD: The pair is breaking above multiyear resistance of 1.70/ 1.7050 and is evolving within an up sloping channel. With weekly indicator also breaking graphical resistance, up move in the pair is poised to continue towards 1.7360 and 1.7540. 1.6780 should cushion pullback, if any. For the day, 1.7083 should limit the downside.
USD/JPY: The pair has given a break above a descending trend line drawn from April highs. Weekly RSI is still above the support at 50% level. The pair is poised to inch higher towards a weekly trend line resistance at 103.34 with next resistance at 104.19. For the day, the pair will inch higher towards 101.86.
AUD/USD: The pair has given a break below the lower limit of channel drawn from Jan. lows. With daily RSI breaking below the 50% mark, a break below 0.9203 will trigger further correction towards 0.9090/60. On the upside, 0.95/0.9535 remains a stiff resistance. For the day, 0.9417/38 will cap the upside.