EUR/USD outlook shifted to bearish near term – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne noted the pair risks further downside on a break below 1.0696.

Key Quotes

“Price action suggests that the EURUSD consolidation that had helped support spot since the turn of the year is in the process of breaking down”.

“Intraday price signals are negative, daily price patterns suggest a bearish outside range session may form and weekly price signals have the makings of a decisive, bearish trend reversal”.

“Sustained weakness below trend support off the early Jan low at 1.0696 (now resistance) should put spot on track for a quick test of the mid/upper 1.05 area”.