EUR/USD to sink towards 1.1040 on failure to reclaim 1.1270/1.1300 – SocGen

EUR/USD has broken the trend line drawn since November (1.1270/1.1300) resulting in regain of downward momentum. While below here, the world’s most popular currency pair could sustain further losses towards 1.1040, economists at Société Générale report.

Initial resistance seen at 1.1210

“Daily MACD is at a higher level as compared to November denoting positive divergence however signals of rebound are still not visible.”

“Failure to reclaim 1.1270/1.1300 can lead to continuation in downtrend. Next objectives are located at 1.1125/1.1085 and projections of 1.1040. 

“First resistance is at 1.1210, the 23.6% retracement of last bout of down move.”