EUR/USD bearish near term – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne noted the pair’s outlook remains bearish in the short term, although pullbacks appear limited for the time being.

Key Quotes

“Heavy losses in the past hour or so put the EUR clearly on the defensive in the short run versus the USD”.

“Spot been rejected three times in the 1.1280 area in the past week and softness below the intervening low at 1.1235 suggests downside risks may extend to the upper 1.11s in the near-term”.

“We see better support in the low 1.11s and note that the broader technical trend remains positive for the EUR, suggesting losses should remain limited for now”.