2 Feb 2015
EUR short-term bearish – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes that technicals suggest that EUR/USD remains bearish in the short-term, but also warn of a prevailing indecision in the markets.
Key Quotes
“EUR is up 0.2% but trading within its recent range of 1.1098 to 1.1423. The final January PMI came in as expected at 51.0.”
“Political vulnerability continues to be the focus with headlines focused on developments in Greece; however 10‐year yields have come down to 10.5%. This is a quiet weak for both data and central bank, leaving EUR likely trading off broader developments and themes.”
“We expect EUR to trend lower over both 2015 and 2016 with material downside risk based on relative growth, central bank policy, sentiment and flows.”
“EURUSD short‐term technicals: bearish—however there is building risk of a temporary period of stability or even retracement.”
“The MACD is flirting with a buy signal; EUR has failed to reach a fresh low since January 26; and candlesticks are warning of some indecision in markets. Accordingly we see better risk/reward opportunities elsewhere.”
Key Quotes
“EUR is up 0.2% but trading within its recent range of 1.1098 to 1.1423. The final January PMI came in as expected at 51.0.”
“Political vulnerability continues to be the focus with headlines focused on developments in Greece; however 10‐year yields have come down to 10.5%. This is a quiet weak for both data and central bank, leaving EUR likely trading off broader developments and themes.”
“We expect EUR to trend lower over both 2015 and 2016 with material downside risk based on relative growth, central bank policy, sentiment and flows.”
“EURUSD short‐term technicals: bearish—however there is building risk of a temporary period of stability or even retracement.”
“The MACD is flirting with a buy signal; EUR has failed to reach a fresh low since January 26; and candlesticks are warning of some indecision in markets. Accordingly we see better risk/reward opportunities elsewhere.”