EURUSD to extend its rebound towards the 1.0360/1.0450 resistance zone – SocGen

EURUSD is above 1.02 after the loosening of covid quarantine rules in China. Economists at Société Générale expect the pair to extend its advance toward the 1.0360/1.0450 region. 

The low for EURUSD is probably behind us

“The loosening of covid quarantine rules in China helps to lift the global economic gloom and will speed the normalisation of supply chains. From a macro perspective for Europe, the prospective re-opening of the Chinese economy is a second necessary condition after the Fed that justifies a more upbeat outlook for foreign trade and the currency.”

“Notwithstanding the energy crisis and pessimism over the conflict in Ukraine, inflation and growth, the low for EURUSD is probably behind us and medium-targets can be raided.”

“The pair is expected to inch higher towards projections of 1.0285 and August high of 1.0360/1.0450 which is also the 200-DMA. This could be a potential resistance zone.” 

“Defending 1.0000/0.9930 is crucial for persistence in up move.”