EUR/USD outlook shifted to bearish – Scotiabank

In opinion of Shaun Osborne, Chief FX Strategist at Scotiabank, the pair’s stance remains bearish in the near term.

Key Quotes

“A near 5 cent range in the past few hours has made an awful mess of the short-term charts but price action underscores our prevailing technical view that EURUSD gains towards 1.15 are untenable”.

“EURUSD has made two decisive, technically bearish breaks in the past 24 hours. On the short-term charts, the loss of support at 1.1132 triggers a short-term double top (from 1.1415/25), targeting a drop to the low 1.08 area”.

“On the daily chart, the EUR has tumbled out on the downside of the upward-sloping channel in place since late 2015, suggesting 1) a resumption of the broader trend lower and 2) major resistance now at 1.1130/50”.