EUR/USD: Daily close below parity to be taken as a cue for a further push lower – Scotiabank

EUR/USD edged below par briefly earlier in the session. In the view of economists at Scotiabank, the world’s most popular currency pair looks prone to more persistent softness again.

Minor EUR rallies are a sell

“The par zone did provide a fairly solid base last month, however – aside from a brief break to the 0.9952 low – so a daily close below 1.0000 is likely to be taken as a cue for a further, more sustained, push lower in the EUR.” 

“Trend indicators here are solidly bearish. Minor EUR rallies are a sell from a technical point of view.”

“Resistance is 1.0050 and 1.0120.”