EUR/USD retains underlying negative bias - Scotiabank

Shaun Osborne, analyst at Scotiabank, notes that the EUR/USD retains an underlying negative bias following the late June break under major trend support.

Key quotes

“EUR/USD short-term technicals: neutral/bearish—We retain an underlying negative bias towards EUR/USD following the late June break under major trend support.”

“The rebound in spot has peaked around key resistance – effectively a retest of the June breakdown in the low/mid 1.12 area and while short-term charts suggest some accumulation through the overnight session around the 1.1135/40 area, we see strong resistance now at 1.1180.”

“The market seems to be trapped between the 200-day MA at 1.1230 and the 50-day MA at 1.1085 , with the 100-day MA at 1.1154 the effective pivot for spot.”