EUR/USD: Failure to reclaim 1.0820/1.0850 ould mean persistence in downtrend – SocGen

EUR/USD declined below 1.0750. Economists at Société Générale analyze the pair’s technical outlook.

Next potential support levels are located at 1.0630 and 1.0510/1.0480

EUR/USD has extended its phase of decline after giving up the 200-DMA recently. It has so far defended the lower limit of a steep down sloping channel near 1.0685. An initial bounce is taking shape however it would be interesting to see if the pair can reclaim the MA near 1.0820/1.0850 which is also the upper band of the channel. Failure could mean persistence in downtrend. 

Next potential support levels are located at 1.0630 and March low of 1.0510/1.0480.