EUR/USD to challenge the 1.17 level on a break below 1.1770 – SocGen

EUR/USD limps below 1.18. Support is seen at 1.1770 then 1.1704, the 2021 low. On the flip side, resistance awaits at 1.1850, economists at Société Générale report.

EUR/USD lacks upside momentum

“EUR/USD is at the potential support of 1.1770 denoting the 88.2% retracement from March and a multi month ascending trend line.”

“Daily RSI is within bearish territory which denotes upside momentum is lacking.”

“1.1850 and recent peak at 1.1900 are immediate hurdles. So long as these are not overcome, an extended bounce may not materialize.” 

“Below 1.1770, the down move could extend towards 1.1745 and March low of 1.1700.”