EUR/USD: Soft and prone to renewed 1.05 test – Scotiabank

EUR/USD starts Q4 on the defensive.  Economists at Scotiabank analyze the pair's outlook. 

Support 1.0490/1.0500, Resistance 1.0600/1.0610

Developing EUR gains through the latter part of last week stalled Friday and the soft close on the week effectively drew a line under the minor EUR recovery. 

The trend remains the market’s friend for now and weak trend momentum – while signaling the EUR is potentially oversold here – remains a dead weight on the EUR’s attempts to recover. 

Support is 1.0490/1.0500.

Resistance is 1.0600/1.0610.