EUR/USD lost upward traction after failing to clear 1.1920 in September and has now broken below a key ascending trend line. With the pair trading near its 50-day moving average and resistance forming around 1.1820, downside risks persist toward 1.1600 and potentially 1.1500, Société Générale's FX analysts note.

EUR/USD momentum fades as 50-DMA comes into view

"EUR/USD faced strong resistance near 1.1920 in September and swiftly retreated into its previous consolidation range, underscoring a lack of sustained upward momentum. It has breached a multi-month ascending trend line, extending its decline toward the 50-DMA."

"The recent lower high around 1.1820 may act as resistance. Failure to overcome this level could result in continued decline, with next objectives at the late August lows of 1.1600/1.1570 and 1.1500."