EUR/USD strength appears temporary – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne, noted the pair’s neutral outlook in the short-term.

Key Quotes

“The EUR slide has stalled. There are tentative signs of a rebound developing after the spot market’s turn from the low 1.05 area earlier this week”.

“Weekly charts are showing a possible “doji” candle forming, supporting the impression of a trend stall”.

“We are skeptical that the EUR rally can extend significantly at this point, however. Heavy price action earlier in November and developing bear trend strength suggest scope for a modest, counter-trend rally at the moment and perhaps no more”.

“We expect firm resistance on rebounds to the upper 1.06s/low 1.07s”.

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