EUR/USD slips to retest upper 1.08s. Economists at Scotiabank analyze the pair’s outlook.
EUR/USD should continue to pressure the upper 1.08s in the short run
Bearish trend momentum is picking up on the shorter-term studies and spot should continue to pressure the upper 1.08s in the short run.
Price action over the past month or so is taking the shape of a bearish Head & Shoulder top; the pattern is not ‘textbook’ but it passes the ‘duck test’ for me.
A clear break under 1.0870 neckline would tilt the balance of risks to more EUR losses in the near to medium term towards the mid/upper 1.06s.
