FX Strategists at Scotiabank suggested the ongoing weakness in the pair could open the door to a test of 1.1448.
“Spot trading below 1.15 – the range base over the past few months and major support on the longer run charts – casts a bearish light over the immediate prospects for the EUR. EURUSD was looking soft anyway but we had expected the 1.15 area to hold”.
“Persistent weakness below this level could suggest a more negative outlook for the currency over the medium to longer-term, we feel. The impulsive nature of today’s decline allows for some tolerance for temporary weakness”.
“Sustained softness – and, more especially – a clear break of 1.1448 (50% retracement of the 1.03/1.25 rise) spells more weakness for EUR this year”.
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.