EUR/USD: Rebound could remain contained – SocGen

Euro limps back after scoring 1.9% gain in three days. Economists at Société Générale expect the pair to suffer a deeper decline on a break under 1.0520. 

Resistance at 1.0910/1.0940

“An initial bounce is underway, however, it would be interesting to see if the pair can reclaim 1.0910/1.0940, the 76.4% retracement of recent down move. Failure could mean persistence in correction.”  

“If the pair breaches recent trough at 1.0520, a deeper decline is likely. Next potential supports are expected to be at 1.0330 and 1.0220/1.0200, the peak of last September.”