The EUR/USD currency pair has experienced some recent rebounds that have led to excitement in the market. However, according to economists at Société Générale, a move above 1.08 is needed to trigger another leg higher.
The current support level for the currency pair is at 1.0520, while the resistance is at 1.0800. If the pair is able to move beyond the recent lower high at 1.0800, it could affirm an extended up move.
Interestingly, the pair is evolving within a possible Head and Shoulders pattern. Failure to reclaim 1.0800 could potentially mean the completion of the pattern, leading to a deeper decline.
Should a break below the support zone at 1.0520/1.0480 materialize, the next potential objectives for the pair would be at 1.0330 and 1.0220/1.0200, which corresponds to the peak of last September.
The past few weeks have been characterized by an increase in economic uncertainty, with the global outbreak of COVID-19 affecting most economies around the world. The United States, in particular, has been hit hard by the outbreak, with the country recording the highest number of deaths and infections. The high number of COVID-19 cases in the US has led to widespread lockdowns and the shutdown of businesses, leading to a contraction in the country’s economy.
The US government has, however, put in place measures to cushion the economy from the effects of COVID-19. For instance, Congress passed a $2.2 trillion stimulus package that included measures such as direct cash transfers to citizens, small businesses loans and grants, and corporate relief. The stimulus package has helped to keep the economy afloat during these trying times, but experts warn that there is still a long way to go.
The EUR/USD currency pair has been affected by the economic uncertainty caused by the outbreak of COVID-19. The pair has been volatile in recent weeks, with many traders unsure of the direction that it will take in the coming weeks.
According to analysts at Societe Generale, the pair could be affected by several factors, including the outcome of the US elections later this year. The outcome of the elections is expected to have significant implications for the global economic system, which could impact the trading dynamics of the EUR/USD currency pair.
Another factor that could affect the pair is the ongoing trade conflict between the US and China. The two countries have been embroiled in a trade conflict for the past few years, which has affected global economic growth. If the conflict is resolved, it could have a positive impact on the global economy and lead to a rise in the value of the EUR/USD currency pair.
In conclusion, the EUR/USD currency pair has been volatile in recent weeks, with traders unsure of the direction it will take. According to analysts at Societe Generale, a move above 1.08 is needed to trigger another leg higher. The support level for the pair is at 1.0520, while the resistance is at 1.0800. It remains to be seen how the pair will react to the global economic uncertainty caused by COVID-19, the US elections, and the ongoing trade conflict between the US and China.
