EUR/USD recovered from 1.0788 but ran into resistance in the familiar 1.09 area. The pair must surpass 1.0930 to enjoy further gains, economists at Société Générale report.

A deeper pullback is likely on a break under 50-DMA

“While we remain constructive on the euro outlook, it is worth asking how far and how fast the single currency can strengthen if the ECB shifts into slower tightening gear. At least three council members (Villeroy, Stournaras and Centeno) believe there is not far to go.”

“A move beyond 1.0930 can result in an extended up move.”

“If a break below 50-DMA at 1.0730/1.0710 materializes, a deeper pullback is likely.”