EUR/USD: Temporary setback or deeper correction? 50-DMA at 1.0680 holds the key – SocGen

EUR/USD moved below 1.08. A break under the 50-Day Moving Average (DMA) at 1.0680 could deepen the fall, economists at Société Générale report.

50-DMA at 1.0680 is crucial support

“Formation of weekly Inverted Hammer points towards the possibility of a pause.”

“The 50-DMA at 1.0680 is crucial support. Break can lead to a deeper pullback towards January low of 1.0480.” 

“Reclaiming 1.1040 would be essential to affirm the next leg of up move.” 

See – EUR/USD: Risks are skewed towards further pullback – OCBC