The euro is looking for a new direction and may have chosen the upside. Will we see further gains? A lot depends on the close. Here is the view from SocGen:

Here is their view, courtesy of eFXnews:

Societe Generale Cross Asset Strategy Research discusses EUR/USD outlook and maintains the view that a close above 1.2170 this week would be a trigger for a long signal.

“EUR/USD is in mid-range, but if we’re above 1.2170 on Friday evening that’s enough of a signal to get long or longer Italian political uncertainty lingers but has little or no FX effect,” SocGen argues.

Meanwhile, SocGen thinks that long AUD/NZD remains an attractive position and looks to buy AUD/USD tactically on a clear break above 0.7790.

“The RBA is held in check by soft wages (heard that before somewhere). But AUD/USD is holding 0.77 and to that extent is doing much better than CAD and GBP. A very tactical long appeals if we break 0.7790 but otherwise, long AUD/NZD remains,” SocGen adds.