EUR/USD eyes a rebound towards the 1.1700 level – SocGen

On Friday, EUR/USD did trade a new low for the year at 1.1514 but fought back and returned over 1.1550. The pair consolidates around this level and could see a leg higher towards the 1.1610 mark, then 1.1700, economists at Société Générale report.

Holding above 1.1495/1.1450 is crucial to see a rebound

“EUR/USD briefly violated the lows of October however formation of a daily Hammer candlestick denotes possibility of an initial bounce.”

“It is worth noting that the pair is not far away from potential support of 1.1495/1.1450 representing the peak of March 2020 and monthly Ichimoku cloud. Defending this zone can result in a rebound towards 1.1610 and the graphical levels of 1.1700. This would be a decisive resistance.”