EUR/USD: Technical picture points toward a substantial drop to 1.14 – Scotiabank
|The EUR/USD’s gains through the low 1.16s last week have faded. From a technical point of view, the pair points to a slump to the low 1.14s, economists at Scotiabank report.
See: ECB to leave the euro sluggish as its policy has sequence limitations – TDS
Yield differentials to pressure the euro
“With ECB officials remaining generally dovish in their policy outlook, we think yield differentials will continue to weigh on the EUR in the short-to-medium term.”
“Spot’s drift back to the 1.1575/85 zone today leaves it vulnerable to renewed pressure on the low 1.15 area.”
“We think broader technical pointers continue to indicate scope for EUR/USD losses to extend to the low 1.14s in the near-term (2-4 weeks) while medium-term pointers suggest losses to the 1.11 area.”
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.