EUR/USD neutral/bearish, could drop below 1.07 – Scotiabank

FX Strategists at Scotiabank remain neutral/bearish on EUR/USD, seeing a scope for a test of sub-1.07 levels.

Key Quotes

“After yesterday’s surge, the EUR rally has come to an abrupt halt. Two tests of the 1.0785/95 area have not made any real impression on the figure area and that leaves a potential, short –term double top on the hourly chart”.

“The 6-hour chart shows a collection of small doji candles forming over the past 24 hours or so, which is sometimes indicative of indecision and a turn in the trend”.

“Trend strength remains strong on the short-term studies though and we need more evidence to confirm that a minor top at least is in. Weakness below 1.0735 today would suggest a move back under 1.07”.