EUR/USD: Break under 1.1200 may open up the downside for a drop to 1.1125 – Scotiabank

EUR/USD losses steadied around the 1.12 level. Economists at Scotiabank analyze the pair’s outlook.

Price action is starting to lean a little more bearish

Flat trading over the past three sessions looks set to extend into Wednesday.

Daily open/close rates have coalesced around the 1.1225 point since Friday. 

Spot remains supported on minor dips but can’t hold much of a bid above 1.1250. 

Price action is starting to lean a little more bearish, with upward momentum stalling and a break under 1.1200 perhaps opening up the downside for a drop to 1.1125.