EUR/USD keeps the neutral bias short-term – Scotiabank

FX Strategists at Scotiabank Shaun Osborne noted the pair needs to close above 1.0840 in order to advanced further.

Key Quotes

“EURUSD has struggled to extend gains through the low 1.08 area again this week”.

“This remains a significant technical point for the market in the medium-term, with the EUR topping out above the figure in early Dec and late Jan”.

“Short-term chart patterns are mixed, with the hourly charts showing six tests of 1.0820 over the past 24 hours and a minor topping out signal below 1.0795. The 6 hour charts also suggest a stall”.

“Broader trends look more constructive as the EUR gains look well supported by trend strength signals on the daily and weekly charts – factors we find hard to ignore generally. However, the EUR has its work cut out – a rise needs to clear a 1.0840 on a sustained basis – weekly close – to signal a trend change, we think”.