Societe Generale’s report analyzes the EUR/USD pair, noting a significant technical moment as it approaches the 200-day moving average. A close above this level could prompt adjustments in positions and hedging structures. The report also references the historical context of similar price movements in 2018.
EUR/USD approaches critical technical level
« It is a seminal technical moment for EUR/USD: the 3-sigma rally puts the 200m ma (1.1950) in play for the first time since early 2018. »
« A close above would confront the spectrum of real money, CTA accounts and corporate Treasurers whether to adjust positions and hedging structures for an overshoot. »
« The euro failed at the same technical juncture in 2018 and a 15% retracement subsequently followed from 1.2555 to 1.0635. »
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)