EUR/USD sticks to the bearish outlook near term – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne remains bearish on the pair, adding that occasional up ticks should be seen as selling opportunities.

Key Quotes

“EURUSD retains a technically negative undertone after the rejection/failure in the low 1.06 area earlier in the week”.

“Spot is, however, still generating some support around 1.0520/25, yesterday’s low and short-term retracement support and the late Feb low at 1.0494 stands just below”.

“We look for a deeper drop in spot towards the mid 1.04 area (at least) term but feel the EUR may struggle to extend significantly in the short run”.

“Additional losses and a low close on the week should, however, set the seal on a broader slide in the coming weeks. We continue to view minor EUR gains as a selling opportunity. Expect firm resistance on gains to 1.0550/70”.