EUR/USD remains neutral near term – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne noted the outlook on the pair remains on the neutral side in the short term.

Key Quotes

“EURUSD gains overnight were easily capped just ahead of 1.07 but slippage has stalled in the low 1.06 area as North American trade picks up”.

“Technically, the short-term trend higher remains intact but it is not especially well supported by oscillator signals (neutral, at best, tracking bearish at worst) and the cap on the market around 1.07 (the initial retracement resistance of the late 2016 sell-off) suggests the bounce may be in trouble”.

“Intraday, we think losses will pick up below 1.06; above 1.07 will suggest a stronger tone for the EUR into next week or beyond”.