EUR/USD stays neutral/bearish near term – Scotiabank

FX Strategists at Scotiabank sees the pair’s outlook to remain neutral to bearish in the short term horizon.

Key Quotes

“Daily price signals suggest that the EUR rally has stalled. A large “shooting star” candle around yesterday peak implies the rally has turned. Intraday price action shows spot catching a modest bid off of the 1.0845/50 area in late morning London trade, however, and we rather think that the EUR downside will only open up more significantly below 1.0820 near-term. We see firm short-term support at 1.0785 now and strong resistance at 1.0900/25”.

“We remain bearish on EURUSD and still see fundamental and political challenges ahead for the EUR”.