EUR/USD: fade rallies to low-1.1200s – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne has recommended selling occasional upticks in spot towards the low-1.1200s.

Key Quotes

“Yesterday’s ECB meeting delivered the expected downward revisions to inflation forecasts and upward revisions to GDP but the EUR slipped on signs that, despite policy makers ruling out lower interest rates, there is little immediate risk of policy becoming less accommodative”.

“EURUSD weakness below short-term support at 1.1205 suggests near-term directional risks are tilting more firmly lower for the EUR via a minor triple top formation (three tests of 1.1280/85 over the past week and a break under the intervening low point of at 1.1205, bottom chart). The formation implies risk to the 1.1125/30 over the coming week. Look to fade short-term rallies to the low 1.12s”.