EUR/USD could retrace further below 1.0575 – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne note the bearish outlook on the pair in the short-term horizon.

Key Quotes

“We have under-estimated the scope for the EUR to rally most of the week”.

“Moreover, negative short-term price signals have failed to deliver much of a retracement in the grind higher in spot. Intraday price action is stalling around 1.06 again and looks potentially bearish; weakness below 1.0575 intraday may see spot drift further back”.

“A high close on the week would, however, improve the potential for the EUR stabilization seen in the past three weeks to develop into a modest rebound back to the 1.08 area”.