EUR/USD rejected at key 1.18 resistance – Société Générale

💡 DMK Insight

EUR/USD just slipped below its rising trend line, and here’s why that matters: The failure to hold above the 1.1800–1.1830 resistance zone signals a potential shift in momentum. Traders should be wary as this breakdown could lead to a corrective decline, especially with key support looming at the 200-day moving average around 1.1550–1.1590. If the pair tests this support and holds, it might present a buying opportunity, but a decisive break below could trigger further selling pressure. Keep an eye on the broader market sentiment and any economic data releases that could influence the dollar’s strength. On the flip side, if EUR/USD manages to reclaim the 1.1800 level, it could invalidate the bearish outlook and set the stage for a renewed push towards higher resistance levels. Watch for volatility around upcoming economic indicators, as they could impact both the euro and dollar significantly. The next few trading sessions will be crucial in determining the pair’s direction.