EUR/USD: Downtrend can extend on a break under last week’s low of 1.0760 – SocGen

EUR/USD on front foot. Economists at Société Générale analyze the pair’s technical outlook. 

Upside limited

EUR/USD recently carved out an interim trough at 1.0695. An initial bounce is under way, but the pair is struggling to establish beyond 50-DMA. The Moving Average at 1.0900/1.0915 is near-term resistance zone. Inability to cross this can lead to persistence in decline.

Last week’s low of 1.0760 is first layer of support. If this gets violated, the downtrend can extend towards next potential supports at 1.0610 and the lower limit of the range within which it has evolved since last year at 1.0484/1.0448.