Societe Generale: FX technicals
EUR/USD: The pair bounced back from the key support of $1.2810 which coincides with the neckline of the H&S pattern and the weekly channel support. A decisive weekly close below $1.2810 would confirm the pattern and will stretch the correction to $1.2660/20. For the day, the pair will continue to consolidate between $1.2983 and $1.3170.
GBP/USD: The pair has bounced from the multiyear channel support of $1.4870/30. A decisive weekly close below $1.4870/30 will confirm the up move from March lows to be a corrective pullback and would lead to continuation of downtrend towards $1.4574 and $1.4337. For the day, $1.5018 and $1.5213 define the consolidation zone.
USD/JPY: The pair tested and retraced from the lower limit of the channel (101.40) drawn from November 2012 lows. The pair will consolidate between 95.60 and 101.90. A decisive close in either direction will dictate the future trend. For the day, a break below the support level of 99.60 would take the pair to the 99.00, lower limit of the range.
AUD/USD: The pair has been evolving within a down sloping channel since July 2011 and is set to correct lower towards the channel support at $0.8870. The daily momentum indicator RSI remains divergent indicating that the downtrend is losing steam. For the day, decisive close above $0.9193 could trigger a short term upside momentum.