EUR/USD: Failure to reclaim the 1.1070 hurdle can take the pair gradually lower – SocGen

EUR/USD upward momentum has deteriorated after approaching the previous multi-year trend line near 1.1070. Economists at Société Générale discuss the pair’s outlook.

Defending 1.0730 is crucial for continuation in up move

“A phase of consolidation is underway; failure to reclaim the 1.1070 hurdle can take the pair gradually lower towards an ascending trend line since September at 1.0790/1.0730; this is a crucial support zone.”

“Daily MACD has turned flattish denoting lack of clear direction. If the pair fails to hold above 1.0730, there would be risk of a deeper downtrend.”