EUR/USD: Potential bullish hammer to give spot a lift – Scotiabank
|Election-related concerns are extending pressure on French assets, and markets are likely to play defensively. This will keep the Euro (EUR) on the back foot, says Shaun Osborne, chief FX strategist at Scotiabank.
Move above 1.0725 to push the Euro higher
“Election concerns are extending pressure on French assets, driving the OAT/Bund 10Y above recent peaks to 73bps. French bank stocks are posting double-digit percentage losses on the week. For now, however, markets are likely to play defensively which will keep the EUR on the back foot.”
“Loss of support around the 1.07 area leaves the EUR looking soft into the end of the week. Short-term patterns reflect some demand emerging around the intraday low and retracement support at 1.0675, however, and the potential formation of a bullish “hammer” signal which may give spot a lift in our session.”
“Gains through 1.0725 may allow the EUR to steady or improve a little in the short run. Otherwise, a retest of 1.06 beckons.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.