EUR/USD near term outlook neutral/bearish – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne has reiterated the pair’s neutral/bearish perspective in the short-term.

Key Quotes

“We have to bang the bearish drum a little more softly this morning as price action in the aftermath of the Fed leaves some distinctly bullish impressions on the charts”.

“Much of the EURUSD pop higher occurred within a two hour window yesterday and the price action overnight suggests that the rebound has quickly tired”.

“The intraday chart is starting to show tentative signs of turning. We are sceptical that the move up will develop significantly and rather think the low/mid 1.11 area should be the “high water” mark for this recovery. A strong weekly close might tilt the balance towards a deeper bounce, however”.