EUR/USD looks bearish near term – Scotiabank

Shaun Osborne, Chief FX Strategist at Scotiabank, sees the pair’s outlook leaning towards the bearish side in the short run.

Key Quotes

“We remain bearish on the EURUSD outlook and continue to feel that relatively stronger US growth and a modest tightening in Fed policy this year will be USD-supportive”.

“EURUSD price action looks heavy intraday and the EUR is bearing the additional weight of weaker trends on key crosses”.

“EURUSD has fallen sharply from the low 1.14s area, suggesting (so far) a fairly significant rejection of the 61.8% retracement of May’s 1.16/1.11 decline”.

“A weak close to the day (potentially an outside range day) should confirm this. Intraday weakness below 1.1350 should see losses extend to 1.1275/1.1300. We prefer EURUSD short positions”.