EUR/USD: Scope for some further corrective weakness towards the mid/upper 1.07s – Scotiabank

EUR/USD drifts lower. Economists at Scotiabank analyze the pair’s outlook.

Technicals point to more softness ahead

EUR/USD looks vulnerable to renewed softness in the near term if or when markets start to reprice Fed easing probabilities.

The EUR’s recent bull trend remains intact on the daily chart but trend support at 1.0925 today appears more vulnerable to attack as 1.10 is holding.

Broader technical signals still suggest a major peak/reversal formed around the EUR’s peak above 1.11 around the turn of the year. 

Risks are tilted towards some further corrective weakness towards the mid/upper 1.07s.