EUR/USD short-term stance remains negative – Scotiabank

In view of Shaun Osborne, Chief FX Strategist at Scoatiabank, the perspective for the pair in the near term points to further decline.

Key Quotes

“We remain fundamentally bearish on the EUR and expect markets to refocus on the likely policy divergence between the Fed and the ECB once the US presidential election dust settles”.

“EURUSD has struggled to get back much above 1.1050 since yesterday’s push lower. The intraday high may be in already for the market, judging by the heavy tone of price action since the test of the 1.1065 area a few hours ago”.

“We see hourly support at 1.1035 and look for EUR losses to extend below here. We spot short-term resistance at 1.1065/70 and fell that the low 1.11 area remains a significant barrier to EUR gains”.

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