EUR/USD near-term outlook remains bearish – Scotiabank

FX Strategist at Scotiabank Eric Theoret reiterated the negative outlook on the pair in the short-term.

Key Quotes

“Yield spreads remain a drag for EUR with the German-U.S. 2Y around fresh decade lows just shy of -165bpts. EUR vols are elevated and risk reversals are suggestive of a continued rise in the premium for protection against EUR weakness”.

“We continue to highlight the absence of major support between current levels and last December’s low 1.0524. Momentum signals are bearish, DMI’s are providing confirmation, and short-term MA’s are aligned in a bearish manner. We look to resistance at 1.0750”.

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