EUR/USD has tested the lower limit of the channel at 0.9500 resulting in a bounce. But the pair needs to surpass the 1.0050/1.0200 resistance zone to confirm a sustainable rebound, economists at Société Générale, report.

EUR/USD could test 0.9380 on a dip below 0.9500

“The pair has tested the lower limit of the channel at 0.9500 resulting in a bounce. However, it must establish itself beyond the 50-DMA and recent high of 1.0050/1.0200 to affirm a sustainable rebound.”

“In case the decline persists below 0.9500, EUR/USD could test next projections at 0.9380 and 0.9200/0.9150.”