EUR/USD: Inability to cross 200-DMA at 1.0830 can result in persistence in down move – SocGen

EUR/USD dead quiet before Fed decision. Economists at Société Générale analyze the pair’s technical outlook.

Reclaiming 200-DMA near 1.0830 essential for bounce to extend

EUR/USD up move has tentatively stalled after hitting 1.1010. Daily MACD has dipped below its trigger denoting receding upward momentum. The pair has pulled back below the 200-DMA which is having flattish slope. This denotes lack of clear direction.

It would be interesting to see if the pair can re-establish above the Moving Average near 1.0830. This break is essential for extension in bounce. Inability to cross above the Moving Average can result in persistence in down move.

Next potential supports are at 1.0700/1.0665 and 1.0580, the 76.4% retracement from October.