EUR/USD neutral/bearish short-term – Scotiabank

Shaun Osborne, Chief FX Strategist at Scotiabank, has reiterated the neutral/bearish outlook for the pair in the near-term.

Key Quotes

“EURUSD has spent the last seven days trading narrowing around the 1.14 area”. 

“The collection of narrow real bodies and long upper/lower shadows on the daily candle chart suggest a heightened level of indecision as investors are reluctant to pare EUR longs but are struggling for incentives to push the EUR higher to new highs. This suggests a degree of fatigue in the rally though a move to new highs would perk the market up a little more obviously”.

“We rather think the EUR looks toppish and intraday signals continue to flash EUR-negative amid heavy, but so far short-lived, sell-offs from above 1.14”.