EUR/USD: watch the death-cross formation - Scotiabank

Analysts at Scotiabank's outlook for EURUSD short-term technicals are neutral-bullish.

Key Quotes:

"Bearish momentum signals have softened considerably from oversold levels and the RSI is now at 45. DMI’s are converging and the 21 day MA (1.1755) has been broken."

"We are somewhat concerned about the medium-term implications of the crossing of the 50 day MA (1.2018) below the 200 day (1.2012), the ‘death cross’."

"However the nearterm balance of risk appears to favor EUR strength and we look to near-term gains toward the early May closing high around 1.1850. Near-term support is expected at 1.1720."