EUR/USD: Corrective losses to the 1.09 area risk extending a little further in the short run – Scotiabank

EUR/USD pivots around 1.09. Economists at Scotiabank analyze the pair’s outlook.

Euro consolidates recent gains

Final Eurozone Manufacturing PMI data was revised up slightly to 44.2, from the preliminary November reading of 43.8. German and French data were revised up while Spain reported a stronger-than-expected 46.3 for the month. Italy’s 44.4 result was, however, below forecasts.

EUR/USD continues to consolidate. 

Recent gains in spot look a little overcooked and corrective losses to the 1.09 area risk extending a little further in the short run to perhaps test 1.0825/1.0850. 

Intraday resistance is 1.0920/1.0925.

Support is 1.0880.