Societe Generale’s FX strategy team reports that EUR/USD continues to face downward pressure, with the currency pair trading at a three-month low and approaching the June low of 1.1325 [1]. The overnight trading range was noted between 1.1343 and 1.1372, highlighting the persistent bearish bias in the market [1]. Key technical levels identified include support at 1.1325 and 1.1270, while resistance is seen at 1.1410 [1].
The bank attributes the ongoing weakness in EUR/USD to widening 2-year UST/EGB spreads, which are contributing to the pair's decline toward these critical support levels [1]. Additionally, upcoming US economic data releases, specifically the PCE and Non-Farm Payrolls (NFP), are cited as factors likely to influence the pair’s movement and potentially drive it closer to or below these support floors [1].
No specific market reactions or analyst forecasts beyond the technical outlook and data watch are provided in the report [1].
CONCLUSION
EUR/USD remains under notable bearish pressure, trading near key support levels as identified by Societe Generale. The market is closely watching upcoming US economic data, which could further impact the pair’s direction. Traders are advised to monitor the 1.1325 and 1.1270 support zones for potential moves.