EUR/USD stays neutral near term – Scotiabank

Shaun Osborne, Chief FX Strategist at Scotiabank, noted the outlook on EUR/USD remains on the neutral camp in the short term.

Key Quotes

“EURUSD had one job to do this week and that was to build on gains and extend through retracement resistance at 1.0708 (38.2% Fib). It has not done that”.

“Heavy losses yesterday have not delivered a definitively negative technical signal on the daily or intraday charts, however, and the EUR has found support over the past 24 hours around the 55-day MA in the low 1.06s”.

“The short-term trend is still up but failure in the low 1.07s – the first real technical hurdle in this rebound – suggests it may struggle to extend. Support is 1.0580”.