EUR/USD eyes next resistance zone at 1.0630/1.0690 – SocGen

EUR/USD is inching towards next resistance zone of 1.0630/1.0690. Failure to surpass this area could lead to a short-term pullback, economists at Société Générale report. 

The bounce is likely to persist

“EUR/USD has given a break above the brief consolidation since mid-November; this crossover highlights the bounce is likely to persist.”

“The pair is gradually inching towards next potential resistance zone at 1.0630/1.0690 representing projections, the low of March 2020 and the descending trend line connecting highs of June 2021 and February 2022. In case the up-move falters near this hurdle, a short-term pullback is not ruled out.”  

“EUR/USD has recently reclaimed its 200DMA and ideally this Moving Average (1.0365) should provide support should a pullback develop. Failure can lead to a revisit of the lower end of recent consolidation zone near 1.0220.”