EUR/USD eyes next supports at 1.0730/1.0710 and May trough of 1.0630 – SocGen

EUR/USD has dipped below 1.08. Economists at Société Générale analyze the pair’s technical outlook.

1.0930 must be overcome to affirm a short-term up move

EUR/USD pullback has extended after breaking below the ascending trend line drawn since last year. It is now challenging the 200-DMA. A bounce can’t be ruled out however high achieved earlier this week at 1.0930 must be overcome to affirm a short-term up move. 

Daily MACD has dipped within negative territory denoting prevalence of steady downward momentum. 

Failure to cross 1.0930 could mean persistence in down move towards next potential supports at projections of 1.0730/1.0710 and May trough of 1.0630.