EUR/USD is rebounding toward its 50-day moving average, but resistance near 1.18 could cap gains, leaving the pair vulnerable to a pullback toward 1.1525 or lower, Société Générale’s FX analysts note.
Resistance near 1.18 May cap Euro’s recovery
“EUR/USD is attempting to reclaim the 50-day moving average after establishing an interim low near 1.1390 earlier this month. The recent pivot high at 1.1790/1.1830 may serve as resistance to the current rebound. If the advance stalls below this area, a short-term pullback is likely.”
“Last week’s low at 1.1525 remains an important support for sustaining the uptrend. A break below 1.1525 could extend the decline, with subsequent targets at 1.1390 and the September 2024 high near 1.1200.”
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