Economists at Société Générale analyze EUR/USD technical outlook.

Defense of trend line support near 1.0900/1.0830 could trigger rebound

EUR/USD has embarked on a deeper pullback after facing resistance near 1.1270, the 61.8% retracement from 2021. The pair has retracted towards the trend line drawn since last year at 1.0900/1.0830. An initial bounce is taking out however the high of last week near 1.1045 must be overcome to affirm an extended rebound. 

In case the pair fails to defend 1.0900/1.0830, the phase of decline is expected to deepen. Next potential supports are at 200-DMA near 1.0725 and 1.0630.