EUR/USD: Short term rebound can’t be ruled out - SocGen

EUR/USD tentatively probed median of the broad range in force since 2015 at 1.0860 last week and has shown a retracement towards the lower limit of a down sloping channel at 1.0540/1.0465 notes Research Team at Societe Generale.

Key Quotes

“More importantly it is now close to the lower bound of aforementioned range and March 2015 lows. Monthly RSI is near a horizontal support suggesting 1.0540/1.0465 as a crucial level. In case this gives way, EUR/USD will drift towards next significant support at 1.0180/1.00 which corresponds with the large descending channel limit, the 76.4% retracement of whole up move during 2000-2008 and projections. Short term though, an initial rebound can’t be ruled out. 1.0610 and 1.07 will be immediate hurdles. A move beyond October lows of 1.0860 remains needed for a sustainable recovery.”