Euro: Correction seen near key averages against US Dollar – Societe Generale
Societe Generale’s Morning Briefing reports EUR/USD traded between 1.1359 and 1.1387 overnight and is on course for a second weekly drop. The defence of the 100‑week moving average at 1.1356 and oversold technicals suggest the correction may have run its course for now. The bank cites support at 1.1270 and resistance at 1.1450, with a large option expiry at 1.1400.
Oversold Euro tests 100wma
"Euro on course for second weekly drop, defense of 100wma (1.1356) and oversold technicals suggest the correction has run its course for now. Support 1.1270, resistance 1.1450."
"EUR/USD sank below 1.14. Worryingly, the stronger services PMI data in September for Germany and France, and the latest rise in the German IFO business survey, failed to attract dip buying."
"Technicals are stretched but a deeper drop cannot be ruled out in 4Q. For the ECB, the weaker euro and elevated oil prices complicate the inflation challenge and only adds to the asymmetric sell off in European debt, raising the burden for governments to stabilise debt levels."
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