EUR/USD: long-term technical analysis suggests pair to hit 1.29 in 2018 (Societe Generale)

In its 2018 Forex Outlook report, Societe Generale presents a technical analysis of the EUR/USD that shows a bullish bias.

"The EUR/USD revisited its 2012 lows near 1.2070/1.21 earlier this year, and this has resulted in a turbulent consolidation. However, the pair remained above key support at 1.1460, which relates to the double bottom wide neck line formed earlier.

Weekly indicators move above a trend line, suggesting that the corrective phase seems to be nearing its end.

This is also affirmed by the formation of an inverted shoulder-head-shoulder figure. The figure shows symptoms of a continuation of the rise.

The EUR/USD should now test the recent highs at 1.2070/1.21. A break above could lead to a stronger uptrend, initially up to 1.2530/98, with the possibility of reaching the 8-year downtrend channel boundary and another potential target: the double bottom at 1.29/1.3190."