EUR/USD neutral/negative near term – Scotiabank

Shaun Osborne, Chief FX Strategist at Scotiabank, said the outlook on the pair leans towards the neutral/bearish side in the short term.

Key Quotes

“We think the EUR remains fundamentally vulnerable and rather expect the recent, low volatility range trade to give way to a more dynamic phase of price movement in Q4”.

“Short term charts show little change in EURUSD’s technical position. The overnight dip to just under 1.1190 has been easily reversed and the hourly chart suggests a short-term low is in for the market (via a bullish “morning star” signal)”.

“But, after trading heavily in the mid 1.12 area yesterday, there is little upside scope for the market at the moment. Expect the broader range to remain 1.1180/1.1280 or so for now”.