EUR/USD Approaches Next Resistance Zone Around 1.16

The EUR/USD exchange rate has broken out of its recent base, according to FX analysts at Société Générale. The bank is now watching the 1.1610/1.1625 zone as the next resistance area for the pair.

The Euro-to-US Dollar (EUR/USD) exchange rate was trading around 1.1543 late on Tuesday, still holding most of its recovery from late July and roughly 1.2% higher over the past month.

FX strategists at Société Générale say the pair has already completed the first part of its technical recovery. The next hurdle is more important, as it challenges a descending trend line drawn from the January high.

The bank's warning is that the bullish case still depends on support holding. If the pair fails to overcome this hurdle, the down move may persist.