Euro remains vulnerable to further losses against US Dollar - Societe Generale

With the Fed holding rates at 3.75%-4.00%, EUR/USD continues to trade close to the bottom of its recent range, according to Societe Generale strategists. They identify technical support at 1.1110 and resistance at 1.1225; a break lower could bring 1.1065 and 1.0950/1.0880 into view. In their assessment, US PCE inflation is likely to influence EUR/USD more than the ECB press conference.

EUR/USD approaches key support as data risks come into focus

"The 2y UST yield retraced below 4.70% and gave EUR/USD a bit more breathing space after threatening new 2026 lows earlier in the day."

"EUR/USD has evolved within a narrow range recently and is in vicinity to the lower boundary at 1.1110. Signals of a large rebound are not yet visible."

"The high reached earlier this week at 1.1225 represents the first resistance. If the pair fails to overcome this hurdle, there is a risk of another downward leg. "

"A break below 1.1110 could extend the decline towards the May 2025 low of 1.1065 and projections near 1.0950/1.0880."

"For EUR/USD, the outcome of US PCE inflation should hold more sway over the ECB press conference."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Learn more.)