EUR/USD to tank towards the 1.07 level on a break below YTD low of 1.1121 – Scotiabank

EUR/USD sinks to the the mid-1.1100s. The 2022 low at 1.1121 emerges as the next target – removal of which would clear the way for a substantial drop to the 1.07 area, economists at Scotiabank report.

EUR fall may steady in the low/mid 1.11s in the short-run

“EUR/USD is experiencing a sharp intraday selloff – the largest 1-day decline since March 2020 – which leaves the late Jan low at 1.1121 exposed.”

The EUR fall may steady in the low/mid 1.11s in the short-run but the broader outlook for the EUR deteriorates quite significantly in the short-to-medium term if the EUR trades below 1.11.” 

“After recent rejections of 1.15, a potential double top has developed on the daily chart which would be triggered on a break of 1.1121 (and would target a drop to the 1.07 area).”