EUR/USD dropped below 1.17 in its grind to the downside. Where is the bottom? The pair continues struggling.
Here is their view, courtesy of eFXdata:
Societe Generale Cross Asset Strategy Research discusses EUR/USD outlook and highlights the key levels to the downside.
“A re-test of the EUR/USD 1.1720 level this morning saw rapid capitulation. The market is still long Euros even if the aggregate short dollar position has been cut.
Italy’s political impasse continues, French and German PMIs were soft and global risk sentiment has taken another knock. November’s 1.1550 low and the 50% retracement of the up-move at 1.1450 are the next hurdles and represent the sucker punch that has followed January’s head-fake.
The Euro needs better data, Italian political resolution (without an on-going threat of leaving the Eurozone) and better positioning. The last of these will be solved imminently but the other two are going to take time and the market isn’t waiting,†SocGen argues.
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