EUR/USD has rebounded from last week’s low and broken a short-term downtrend, but repeated failures around the 50-DMA underline lingering indecision. A sustained break above 1.1780/1.1820 is needed to confirm upside traction, Société Générale’s FX analysts note.
EUR faces key resistance near 1.18 against USD
“EUR/USD successfully defended last week’s low of 1.1540, leading to a steady bounce. The pair has broken above a short-term descending trend line and is now testing the 50-DMA. Recent crisscross moves around this moving average indicate a lack of clear direction.”
“It will be interesting to watch if the pair can establish itself beyond the recent lower highs of 1.1780/1.1820. Failure to break above this zone could result in a pullback.”