EUR/USD could tumble as low as 1.06 – Scotiabank

While the EUR/USD bounced back above the 1.09 level a few hours ago, economists at Scotiabank see the pair at risk of falling below 1.08 towards the 1.06 mark.

Recent price action points to another decline under 1.09

“Recent price action points to another decline under 1.09 that then leaves the overnight low of 1.0875 (a five-week low) as support followed by the mid-1.08s and then a fairly unobstructed drop to key support of 1.08.”

“Resistance after the overnight high of ~1.0925 is followed by the mid-figure zone that marked the currency’s range bottom last week.”

“We see the EUR heading for a re-test of 1.08 shortly with continued negative sentiment perhaps pulling it toward the 1.06 mark.”