EUR/USD: Overshoot to support at 1.0460 cannot be excluded as a risk – Scotiabank

EUR’s slide continues. Economists at Scotiabank note that the EUR/USD pair could dive as low as 1.0460.

More declines ahead for EUR/USD

“A third consecutive lower weekly close and losses, if rather limited so far, below key short-term support at 1.0660 target more declines ahead for EUR/USD from a technical point of view.” 

“The break-out from the Feb range implies downside risks extending to the low 1.05 area over the next 2-4 weeks. An overshoot to retracement support at 1.0460 (38.2% Fib of the 0.95/1.10 rally) cannot be excluded as a risk.”