EUR/USD has extended its downtrend after breaking below the trend line drawn since 2000. This violation has led the pair towards the lows of 2016/2017 near 1.0340. A break under here would open up additional losses towards 1.0070/1.0000, analysts at Société Générale report.
Break above 1.0790/1.0810 essential to affirm a phase of rebound
“The neckline at 1.0790/1.0810, which is also the low of March, is an important resistance. So long as crossover beyond this doesn’t materialize, the downtrend is expected to persist.”
“Failure to defend 1.0340 would affirm a continuation in decline. The next potential objectives could be at 1.0070/1.0000, the 76.4% retracement of the whole uptrend during 2000 and 2008.”