EUR/USD outlook still bearish near term – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, reiterated the pair’s stance remains on the bearish side in the short-term horizon.

Key Quotes

“EURUSD tested and failed against the 200-day MA and eased back below the 50-day MA last week”.

“The technical undertone looks soft again with 1.09 easily rejected. The short-term trend lower is well established on the charts and leaves spot at risk of pushing below last week’s low at 1.0652 this morning”.

“We expect a break under 1.0650 should see EURUSD trading back on a 1.05 handle fairly quickly. We see resistance at 1.0700/05”.