EUR/USD pulls back from 1.1570 resistance – Société Générale

EUR/USD is under pressure as technical momentum fades, with the pair testing key trend support and downside risks building below the 50-day moving average near 1.1070, Société Générale's FX analysts note.

Series of lower highs highlights weakening momentum

"EUR/USD has experienced a gradual pullback after facing strong resistance at 1.1570 last month. It has formed a series of lower peaks and troughs in daily timeframe chart denoting receding upward momentum. This is also highlighted by daily MACD, which has dipped below its trigger line."

"The pair is challenging the descending trend line drawn since 2023. A retest of the 50-DMA near 1.1070 can’t be ruled out. Failure to defend this may result in an extended decline towards March high of 1.1025/1.0950."