EUR/USD: There is a chance of some stabilization or recovery in the near-term – Scotiabank

EUR/USD losses continue to coalesce around the low 1.06 support zone. Economists at Scotiabank analyze the pair’s outlook.

Support in low 1.06 area remains solid

The EUR is weak but, with 10 weeks of consecutive losses under it now and support in the low 1.06 area (long-term retracement support at 1.0612) holding, there is a chance of some stabilization or recovery in the EUR in the near-term. 

Short-term price action suggests solid demand on dips to the 1.0620 zone. 

Gains through 1.0670/1.0675 should signal additional gains ahead.