EUR/USD to see another leg lower towards 1.0840 on a break below 1.1120 – SocGen

EUR/USD has remained within the limits of 1.1120 and 1.1485 since January. A break under the lower band would open up additional losses towards 1.0840, economists at Société Générale report.

Reclaiming 1.1330/1.1345 essential to avert further dip

“A bounce is not ruled out however a descending trend line at 1.1330/1.1345 could cap. Crossing this would be essential for a retest of 1.1485.”

“In the event 1.1120 gets violated, there would be a risk of next leg of downtrend towards projections of 1.1080/1.1040 and the multiyear ascending trend line at 1.0840.”