EUR/CZK to resume downtrend on failure to defend 23.58/23.53 – SocGen

EUR/CZK erased gains of the past two days yesterday. A break below 23.58/23.53 would open up 23.35, then 23.00/22.88, analysts at Société Générale report.

Initial resistance seen at 23.85

“Lower band of this range at 23.58/23.53 which is also the 76.4% retracement of recent bounce is important support. If the pair fails to defend this, resumption in downtrend is not ruled out. In such a scenario, next potential objectives are likely to be at the low formed earlier this month near 23.35 and 23.00/22.88.”

“Upper end of range at 23.85 is first resistance.”