EUR/USD: Support at 1.0730/1.0710 must hold to avert deeper pullback – SocGen

EUR/USD is at potential support zone of 1.0730/1.0710. A break below here could open up further losses, analysts at Société Générale report.

High formed last week at 1.0910 is likely to cap

“EUR/USD is challenging the 100-DMA; it is worth noting that this MA had cushioned downside in March.”

“The pair is close to potential support of 1.0730/1.0710 representing the 23.6% retracement from last year. An initial bounce is not ruled out however the high formed last week at 1.0910 is likely to cap.”  

“Failure to defend 1.0730/1.0710 can extend the decline towards 1.0650 and perhaps even towards March low of 1.0510.”