EUR/USD: Mid-1.04 area looks to be the destination over the next few weeks – Scotiabank

EUR/USD has eased below 1.06. Economists at Scotiabank expect the pair to extend its fall.

Modest gains are likely to remain well offered

“Short and medium-term trends are tilted bearish for the EUR.”

“EURUSD losses below key support in the upper 1.06s earlier this week increased technical pressure on the EUR and suggest more losses are likely in the short run and perhaps beyond.” 

“There is little in terms of support below the market ahead of the mid-1.04 area – 1.0461 is the 38.2% Fib retracement of the 0.95/1.10 rally and looks to be the likely destination for the EUR over the next few weeks.”

“Resistance is 1.0650/75. Modest EUR gains are likely to remain well offered.”