EUR/USD: Large downside doesn’t look on cards - SocGen

Research Team at Societe Generale, notices that EUR/USD is now probing the lower bound of the broad consolidation zone in force since last year at 1.0540/25 which is also a projection for the ongoing down move.

Key Quotes

“It is noteworthy that the pair has been flirting with the lower bound of the multi decade channel and signs of a sustainable recovery are awaited. However given monthly and daily indicators which are close to support levels, a large downside doesn’t look on cards. In case of continuation in correction, next support levels will be at 1.0492 and more importantly lows of March last year at 1.0465. 1.0625 and 1.0705/25 will be immediate hurdles while 1.0820/60, the 38.2% retracement of recent down leg will remain an important resistance.”