EUR/USD: short-term trends more constructive for the EUR - Scotiabank

Scotiabank analyst team notes that EUR/USD technicals look neutral to bearish, with short-term trends more constructive for the EUR but it has failed to hold gains above 1.11 since late June.

Key Quotes

“EURUSD short-term technicals: (neutral/bearish) EUR/USD is maintaining its mid-week bounce but progress beyond the high point seen earlier in the week is proving difficult. We have to concede that short-term trends are more constructive for the EUR but we also note that market has struggled to hold gains above 1.11 since late June.”

“A strong close to the week may bring a little more, short -term relief for spot but we still rather view the late June break under trend channel support as a major negative for the market in the medium term. We see a strong band of resistance above the market at 1.1150/1.1250.”