Quotes from Societe Generale Cross Asset Research:
-EUR/CZK faced stiff resistance at the upper limit of a multiyear channel and formed a shooting star last month suggesting possibility of a pullback.
-Since then the pair has retraced towards its 20 month MA and more importantly it is approaching an immediate support level of 27.00, the 50% retracement from October 2013 lows. Monthly RSI is breaking below support hinting at further correction.
-If we drop down to daily chart, EUR/CZK has violated an upward channel and looks poised to drift towards 27.00, a break below which will mean a much deeper retracement towards 26.76.
