EUR/USD: Losses will extend on a break under last week’s low at 1.0724 – Scotiabank

EUR/USD dips below the 1.08 level. Economists at Scotiabank analyze the pair’s outlook.

A clear push through 1.0825/1.0830 is needed to lift the Euro

EUR/USD’s peak on Tuesday in the low 1.08 zone reflects another failed test of the 200-DMA (1.0826) which has served as short-term resistance for spot over the past week. 

Short-term price action suggests some upside potential in the EUR still after spot broke above the late November/early December downtrend but a clear push through 1.0825/1.0830 is needed to lift the EUR from here.

Losses will extend on a break under last week’s low at 1.0724.