EUR/CZK to grind lower towards 24.75 on a break below 25.25 – SocGen

EUR/CZK has dropped to a low of 25.264. In case the pair breaches the 25.25 mark, a slide to the 2020 low of 24.75 would be on the cards, economists at Société Générale report.

A break above recent peak of 25.55 is essential for a short-term rebound

“EUR/CZK is once again probing the support at 25.25 which it has defended since April. It could be forming a base, however, a break above the recent peak of 25.55 is essential for a short-term rebound.”

“In the event 25.25 gets violated, there could be a risk of a deeper down move. This breakdown could lead the pair lower towards next potential support levels at 25.12/25.07 representing the lower band of a multi month channel and perhaps even towards 2020 low of 24.75.”