EUR/USD looks to further downside near term – Scotiabank

Shaun Osborne, Chief FX Strategist at Scotiabank, sees the pair still under pressure with strong resistance in the 1.0450/75 band.

Key Quotes

“Despite the squeeze higher from the intraday low yesterday, the technical picture remains negative for the EUR”.

“There has been limited follow through interest through the mid 1.04s to bolster gains and short-term price patterns suggest a consolidation, rather than technical reversal, is playing out on the charts at this point”.

“Hourly price signals are starting to turn a little softer and we think weakness below 1.0420 later this morning may see the EUR slip back further. We see resistance at 1.0450/75 and key resistance now at 1.0625. The broader trend remains bearish”.