EUR/USD has experienced a large range-bound consolidation after probing the multiyear trend line near 1.1070/1.1100. Economists at Société Générale analyze the pair’s technical outlook.

Last week’s low of 1.0730 is important support

Retest of recent peak near 1.1070/1.1100 is not ruled out; this remains an important resistance zone. If this hurdle is overcome, the uptrend is likely to persist towards 1.1270, the 61.8% retracement of the whole downtrend during 2021/2022.  

Last week’s at 1.0730 is a crucial support. Only if this gets violated would there be risk of one more down leg.