EUR/USD defends 1.0800. Economists at Société Générale analyze the pair’s technical outlook.

Crucial support at 1.0795/1.0760

EUR/USD rebound faced interim hurdle near 1.0980 resulting in a gradual pullback. It has dipped below the 200-DMA and is approaching recent pivot low near 1.0795/1.0760 which remains an important support. Defence of this zone could result in rebound but it would be interesting to see if the pair can re-establish beyond last week high of 1.0945. Failure could mean persistence in decline.

Break below 1.0795/1.0760 can lead to extension in down move towards February trough of 1.0695 and 1.0610.