SOC GEN: After a corrective pullback,.........>

FOREX: SOC GEN: After a corrective pullback, AUD/USD has now reached the

important support at 0.7780/50 which happens to be the neckline of the large

inverse Head and Shoulders, the graphical level consisting of highs of last

November and March and close to the 38.2% retracement from December. Formation

of a daily hammer near those levels indicates possibility of a rebound. With

daily RSI closing in on a multi month trend support, AUD/USD is expected to head

first towards 0.7915 and even towards 0.80/0.8050, the 61.8% retracement of the

recent down move. Eventually the uptrend should persist towards recent highs of

0.8130/65 and 0.8460.

EUR/JPY has faced resistance near first significant projection at 134.40, the

61.8% retracement of the 2014 to 2016 correction (please refer to FX Special

"Three ways to sell the yen"). A short term correction is now taking shape and

EUR/JPY is likely to revisit recent highs of 131.40 which is also the steeper up

channel. A break below will mean a consolidation lower towards 129.30/129.20,

the 23.6% retracement from April.