EUR/USD scope for a correction lower – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne noted the pair’s neutral/bearish outlook in the near term, although occasional downside should be shallow.

Key Quotes

“Broader patterns are firm but the intraday read of the charts suggests the EUR is prone to a little corrective weakness in the near term”.

“Hourly charts look toppish and, after a three big figure rally in the past few days, we can allow for a little corrective weakness”.

“Broader trends are still solid-looking, however, and we note an alignment of bullish trend indicators across a range of timeframes as supportive of a generally bullish technical view. We look for limited downside and expect firm support on dips to the low/mid 1.13 area. Key short-term support is 1.1290/00”.