EUR/USD to drift back lower towards 1.07 on failure at 1.1040 – SocGen

EUR/USD has staged an initial bounce after testing 1.0806 earlier this week. Economists at Société Générale expect the world’s most popular currency pair to drift back lower on failure to surpass the 1.1040 mark.

1.1040 could cap bounce

“Short-term hurdle is at daily Tenkan line near 1.1040.”

“Failure to cross 1.1040 can extend the down move towards next potential supports at a multiyear trend line near 1.0700 and 2020 low of 1.0635.”