EUR/USD: Battle over 1.0625/1.0645 support to determine whether the push higher can be sustained – Scotiabank

EUR/USD slides from high 1.06 area. Economists at Scotiabank analyze the pair’s outlook.

Bearish reversal signals forming on the 1 and 6-hour charts

Spot’s rejection of the upper 1.06 area looks quite emphatic on the short-term chart, with bearish reversal signals forming on the 1 and 6-hour charts. 

The broader pattern of trade still looks quite constructive for the EUR after Monday’s move higher, however, so it will come down to a battle over support in the 1.0625/1.0645 region to determine whether the push higher in the EUR can be sustained and push on to 1.0750/1.0760 of whether it drops back to a 1.05 handle.