EUR/USD is undergoing broad consolidation - SocGen

Research Team at Societe Generale, suggests that after testing key levels 1.06/1.05 last year, EUR/USD is undergoing broad consolidation.

Key Quotes

“After forming spinning top at important hurdle of 1.1460, EUR/USD is undergoing a retracement. Daily stochastic has pulled back after testing a ceiling and has given a negative crossover pointing towards limited upside. Very short term, a rebound is likely however 1.1380/1.1410 will be an immediate resistance. Eventually a retracement towards 1.1270 and even towards recent lows of 1.1150 looks probable.

1.05 will decide about next leg of down cycle. Short term, the pair is developing a sub-range within the broader consolidation and is retracing from the upper limit at 1.1460. This is likely to be an important hurdle near term.”