Synopsis:

SocGen highlights the importance of the 1.0480/1.0448 support zone as a determinant for the pair’s next directional move.

Key Points:

• Technical Context:

  • The daily MACD is registering multi-month lows, indicating an overstretched decline in EUR/USD.
  • The 1.0480/1.0448 zone, which includes projections and 2023 lows, emerges as a key support level.

• Short-Term Outlook:

  • A brief bounce remains possible, with 1.0670—the 38.2% retracement of the recent decline—acting as a near-term resistance level.

• Larger Downtrend Risks:

  • If EUR/USD establishes below the crucial 1.0480/1.0448 zone, it could pave the way for a more pronounced downtrend.

Conclusion:

SocGen underscores the significance of the 1.0480/1.0448 zone for EUR/USD. A successful defense of this level could lead to a short-term bounce, but a decisive break below would likely signal the continuation of a larger downtrend. Traders should watch this key level closely for directional cues