EUR/USD to plunge towards 0.9200/0.9150 on a break under 0.9500 – SocGen

EUR/USD turned south on Wednesday and tumbled to a new low at around 0.9550. A break below 0.9500 would clear the path for further losses towards the next support at the 0.9200/0.9150 region, economists at Société Générale report.

Bounce could remain short-lived

“EUR/USD has approached the lower limit of the descending channel since February at 0.9500. Defending this can result in a bounce, however, August low of 0.9860/0.9900 is likely to cap.”

“Below 0.9500, next potential support is at projections of 0.9200/0.9150.”