EUR/USD: Corrective losses may extend to 1.07/1.08 in the next few weeks – Scotiabank

EUR/USD holds range around 1.0950. Economists at Scotiabank analyze the pair’s outlook.

Weekly techs lean bearish

Looking beyond the narrow, consolidation range evident on the intraday and daily chart, the weekly pattern of trade still leans EUR-bearish.

A net loss for the EUR on the week last week follows the bearish top/reversal signal that developed on the weekly chart over the turn of the year and completes a bearish ‘evening star’ pattern on the weekly. Look for resistance near 1.10 now.

Support is 1.0875.

Corrective losses may extend to 1.07/1.08 in the next few weeks.