EUR/USD bearish, risks a test of 1.1500 – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne sees the pair could re-visit the 1.15 region on a break below the 1.17 handle.

Key Quotes

“EURUSD retains a soft, technical undertone. We note strong, potential support at 1.1725/35, however, represented by the 23.6% retracement of the Apr-Sep rally (1.1732) and the 200-week MA (1.1722,) which the EUR pushed above for the first time since 2014 in mid-Aug”.

“Price trends look strong on the shorter-term studies but signals are mixed on the longer run oscillators, suggesting the move lower is more corrective in nature at this point”.

“A clear reak under support in the 1.17 zone suggests the EUR risks dipping towards 1.15 in the next few weeks”.