EUR/USD: Potential of the technical pattern is at 1.13 - SocGen

Analysts at Societe Generale explains that late last year, EUR/USD hit the lower bound of a descending channel drawn since 2015 at 1.0350/1.03, and since then it has evolved within an inverse head and shoulders pattern.

Key Quotes

“The pair is now piercing above the neckline and is tantalisingly close to the key hurdle at 1.0810/60, representing the graphical level consisting of May/July 2015 and the 38.2% retracement from August 2015. Once a breakout happens, it will mean an extended recovery towards a projection at 1.0940/85. The potential of the pattern is at 1.13.”