Shaun Osborne, Chief FX Strategist at Scotiabank, has reiterated the negative stance for the pair in the short term horizon.
“Loss of short-term support around 1.1005 yesterday prompted modest weakness in the EUR but not to the extent we expected”.
“However, the EUR has struggled to recover through the 1.10 zone and intraday price signals look weak again at the outset of our session”.
“We see strong resistance at the figure now and look for EUR losses to extend below 1.1075”.
“Trend strength signals are aligning bearishly for the EUR across a range of timeframes, suggesting steady downside pressure on the EUR in the medium-term and limited scope for counter-trend corrections. Sell EUR rallies”.