EUR/USD Near-term focus on the downside towards a retest of the 1.05/1.06 range – Scotiabank

The EUR is trading flat against the USD. Economists at Scotiabank expect the EUR/USD to head lower towards the 1.05/06 region.

EU revises up GDP for 2023

“The EU revised its growth outlook to 0.9% this year (from 0.3%), which puts the Eurozone more or less in line with North American rates of growth.”

“Weakness below support in the low 1.07s last week weakened the EUR’s short-term technical picture at least. But weekly price action turned less supportive at the start of the month and EUR losses below the 55-day MA (now resistance at 1.0690) keep the near-term focus on the downside and towards a retest of the 1.05/1.06 range.”