EUR/USD needs to trade above 1.13 or below 1.1150 to signal a range break - Scotiabank

Shaun Osborne, Chief Strategist at Scotiabank, notes that  continue to lean more bearishly towards the EUR as growth and policy prospects remain negative relative to the USD, although technicals remain neutral at this point.

Key Quotes

“We continue to lean more bearishly towards the EUR as growth and policy prospects remain negative relative to the USD. However, there is little sign of the recent range trade breaking. We think October may see a little more volatility, however, when seasonal trends tend to be a little more favourable for the USD.”. 

“EURUSD short-term technicals: neutral—There is still very little to pull out of the short and medium-term charts. The EUR is pivoting around the 100-day MA (1.1208) and faces a band of support in the low/mid 1.1s (40-day MA, 200-day MA). Short-term trend resistance is at 1.1308. Trend strength signals are positive on the longer-term charts and flat on the shorter-term studies. Broadly, EURUSD needs to trade above 1.13 or below 1.1150 decisively to signal a range break.”