EUR/USD: Prone to renewed softness on the charts – Scotiabank

EUR/USD is trading modestly higher. However, economists at Scotiabank note that technicals are leaning bearish for the pair.

Key support aligns at  1.0535

“The EUR’s rebound from the mid-week low (equating to a test of the 100-Day Moving Average at 1.0536) may be faltering. Intraday price action suggests a peak/reversal developed, with the EUR topping out via a bearish outside range session on the 6-hour chart around 1.0605 (resistance).” 

“Intraday losses are pressuring minor support around 1.0585 and should extend more obviously below 1.0575.”

“Key support is 1.0535.”