EUR/USD to suffer a substantial drop to 1.16 on a slide below 1.17 – SocGen

EUR/USD is close to potential support of 1.1700 representing the low of March. Below 1.1700, next projections are located at 1.1600, as economists at Société Générale note.

See – EUR/USD: Break below YTD lows at 1.1704 to expose the 1.1603 mark – OCBC

The path of least resistance still appears skewed to the downside

“The sequence of lower lows suggests that the selling has not been exhausted, but the RSI is approaching oversold territory.”

“Support for EUR/USD below 1.1704 is at 1.1695. A deeper pullback towards 1.1600 beckons on a successful break.”

“A below-forecast number on US CPI today could elicit pockets of short covering, only for the rally to be sold again.”