Euro remains vulnerable to further losses against US Dollar - Societe Generale

The Fed held rates at 3.75%-4.00%. Following the decision, EUR/USD continues to trade towards the bottom of its recent range, according to Societe Generale strategists. Support stands at 1.1110, while resistance is at 1.1225. A break lower could bring 1.1065 and 1.0950/1.0880 into view. The strategists expect US PCE inflation to influence EUR/USD more than the ECB press conference.

1.1110 support and data-driven risks

"The 2y UST yield retraced below 4.70% and gave EUR/USD a bit more breathing space after threatening new 2026 lows earlier in the day."

"EUR/USD has evolved within a narrow range recently and is in vicinity to the lower boundary at 1.1110. Signals of a large rebound are not yet visible."

"The high reached earlier this week at 1.1225 represents the first resistance. If the pair fails to overcome this hurdle, there is a risk of another downward leg. "

"A break below 1.1110 could extend the decline towards the May 2025 low of 1.1065 and projections near 1.0950/1.0880."

"For EUR/USD, the outcome of US PCE inflation should hold more sway over the ECB press conference."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)