Euro: Breaks below key averages against US Dollar – Societe Generale

💡 DMK Insight

EUR/USD just hit its lowest point since April, and here’s why that’s crucial for traders: The recent drop is largely driven by widening UST/Bund spreads and rising energy prices, which are putting significant pressure on the Euro. Breaking below both the 50- and 200-day moving averages signals a bearish trend, suggesting that traders should be cautious about long positions. The immediate support level at 1.1560 is critical; a sustained break below this could trigger further selling pressure, potentially dragging the pair down towards the next support zone. On the flip side, resistance at 1.1720 will be a key level to watch for any potential recovery attempts. If the Euro fails to regain ground here, it could reinforce bearish sentiment. Traders should keep an eye on economic indicators from the Eurozone and the U.S. that could influence these dynamics, particularly any shifts in energy prices or central bank commentary. The next few days will be telling; if the pair continues to hover near these levels, it could set the stage for a more pronounced move in either direction.