12 Jan 2015
EUR/USD looking to test 1.1754 levels – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, maintains the bearish outlook on EUR/USD, anticipating the pair to test and break through last week’s lows of 1.1754.
Key Quotes
“EUR is down 0.3%, but is still trading above last week’s low of 1.1754 as market participants digest what is likely to lie ahead from the ECB and how the European court will rule on the legality of the OMT program. Into the NA open, the markets appeared focused on the potential for the ECB to announce a QE plan that would be based on paid in capital.”
“This week the Eurozone will release its final December CPI print, expected to be in line with the flash estimate at –0.2% y/y on headline and +0.8%y/y on core. We expect EUR to trend lower and hold a year‐end 1.1300 forecast.”
“EURUSD short‐term technicals: bearish—all signals warn of downside risk, and the RSI at 25 has not entered oversold levels. Accordingly we remain biased to be short EURUSD, looking for a test and break through last week’s lows of 1.1754.”
Key Quotes
“EUR is down 0.3%, but is still trading above last week’s low of 1.1754 as market participants digest what is likely to lie ahead from the ECB and how the European court will rule on the legality of the OMT program. Into the NA open, the markets appeared focused on the potential for the ECB to announce a QE plan that would be based on paid in capital.”
“This week the Eurozone will release its final December CPI print, expected to be in line with the flash estimate at –0.2% y/y on headline and +0.8%y/y on core. We expect EUR to trend lower and hold a year‐end 1.1300 forecast.”
“EURUSD short‐term technicals: bearish—all signals warn of downside risk, and the RSI at 25 has not entered oversold levels. Accordingly we remain biased to be short EURUSD, looking for a test and break through last week’s lows of 1.1754.”