EUR/USD: Resilience near pre-war highs – Societe Generale

💡 DMK Insight

EUR/USD is on the move, breaking through 1.1750 and eyeing 1.18, and here’s why that matters: This upward momentum signals a potential shift in sentiment, especially as it approaches pre-conflict levels. Traders should be aware that the support at 1.1673 is crucial; a drop below this could trigger a wave of selling, while a solid hold could pave the way for a test of resistance at 1.1830. Keep an eye on broader market trends, particularly any shifts in U.S. economic data or ECB policy changes, as these could impact the pair significantly. If the euro continues to strengthen, we might see related assets like European equities gain traction as well. But don’t overlook the flip side: if geopolitical tensions escalate or if the U.S. dollar finds strength from unexpected economic news, we could see a rapid reversal. Watch for volatility around key economic releases this week, as they could provide the catalyst for a breakout or a breakdown.