EUR/USD needs to surpass 1.0780 to extend the bounce – SocGen

EUR/USD continues to move sideways at around 1.0650. Next hurdle is seen near 1.0780, economists at Société Générale report.

Receding upward momentum

“The pair has achieved initial projections for the bounce and is approaching last June high of 1.0780. This is an interim resistance.”

“Recent bout of bounce has developed within two converging ascending trend lines forming a rising wedge; this generally denotes receding upward momentum. This is also highlighted by daily MACD which has turned flattish.”

“In case the rebound falters near 1.0780, a short-term pullback is not ruled out towards the 200DMA at 1.0340 and 1.0220.”