EUR/USD expected to test lower levels – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, sees the pair grinding lower in the near term.

Key Quotes

“EUR has made a decisive break of the 50 day MA (1.1315), shifting the focus to the April low around 1.1220”.

“Momentum indicators are suggestive of acceleration, and short-term trend indicators have confirmed with a break of the 9 day MA (1.1353) below the 21 day MA (1.1362)”.

“A consideration of the Dec-May rally hints to potential Fibo support around the 38.2% retracement at 1.1200. The 50% retracement is at 1.1070 and the 61.8% Fibo is just below 1.0950”.