EUR/USD: Weakness below support at 1.0610 would point to losses extending to 1.04 – Scotiabank

EUR/USD stabilizes in the low 1.06 area. Economists at Scotiabank analyze the pair’s outlook.

Undertone remains soft

Minor spot gains from the low 1.06 area have not developed too far on the day but support emerging very, very close to the late May low warrants some attention, even if broader trend signals look quite negative for the EUR at the moment. 

Intraday gains have stalled around 1.0670 and spot really needs to regain 1.07+ to show some signs of short-term technical strength. 

Weakness below longer-run retracement support at 1.0610 would point to losses extending to 1.04.