EUR/USD gains appear capped around 1.0675/1.0725 – Scotiabank

Shaun Osborne, FX Chief Strategist at Scotiabank, expects the pair to resume its downside in the near term, keeping the bearish outlook unchanged.

Key Quotes

“EURUSD gains have stalled on the short-term charts, with expected resistance in the upper 1.06/low1.07s capping gains”.

“The short-term tone remains consolidative, with the market carving out a (potential) bear flag on shorter term charts via the sideways-to-slightly higher range trade that has formed over the past two weeks. Recent history suggests that these consolidations rarely last too long”.

“We expect resistance at 1.675/1.0725 to contain gains and for the loss of support at 1.0575 to trigger renewed downside momentum”.