EUR/USD to extend its counce towards 1.1330 on a move beyond 1.1120/50 – SocGen

EUR/USD has formed a low near 1.0806. A sharp bounce is under way and the pair is heading towards January trough at 1.1120/1.1150. A break past here would open up additional gains to 1.1235, then 1.1330, economists at Société Générale report.

Support 1.1000, resistance 1.1120 

“Daily MACD is still in negative territory which denotes steady upside momentum is lacking.”

“A break above 1.1120/1.1150 would be essential for an extended bounce towards the high formed earlier this month at 1.1235 and 1.1330.”

“Immediate support levels are located at 1.1000 and 1.0915, the 76.4% retracement of the bounce.”