EUR/USD: Only a break of 1.08 followed by 1.0910/1.0940 would clear the path for a return to 1.10 – SocGen

EUR/USD is glued to 50-Day Moving Average (DMA) at 1.0730 for third day. Only a move above 1.08, then 1.0910/40 would open up 1.10, economists at Société Générale report.

Any ECB confusion could send FX participants scrambling for cover

“ECB president Lagarde has struggled to get the message across in the past, so any confusion tomorrow, at what will be a crucial meeting that resets inflation and rate expectations, could send FX participants scrambling for cover.” 

“Selling rallies in February turned into tentative buying of dips in March but progress has been slow.”

“Only a break of 1.08 followed by 1.0910/1.0940 would clear the path for a return to 1.10.”