EUR/USD: Failure to defend 1.0725/1.0700 could mean deeper decline towards 1.0610 – SocGen

EUR/USD has moved back to the December low at 1.0725. Economists at Société Général analyze the pair’s outlook. 

Recent pivot high at 1.0900 must be overcome to confirm an extended bounce

EUR/USD has experienced a steady pullback after failing to reclaim interim resistance zone near the graphical levels of 1.1100/1.1150 representing highs of April / May 2023. It has given up both 50-DMA and 200-DMA but slope of both the Moving Averages is flattish denoting lack of clear direction.

December low of 1.0725/1.0700 is next potential support. Failure to defend could mean deeper decline towards 1.0610 and the lower limit of the range since January 2023 at 1.0484/1.0448.

Recent pivot high at 1.0900 must be overcome to confirm an extended bounce.