EUR/USD targets 1.05 in the near term – Scotiabank

Shaun Osborne, Chief FX Strategist at Scotiabank, believes the pair is headed towards another test of the 1.05 handle in the short term.

Key Quotes

“Soft price action in earlier European trading has left a bit of a dent in the short-term technical picture for EURUSD, even though spot has firmed a little from the low print around 1.0560”.

“A fourth, and strong, rejection of the 1.06+ level yesterday should keep the broader technical undertone negative and strengthen near-term resistance above the 1.06 area (55-day MA just above)”.

“Look to fade short-term gains to the 1.06 area. We target a retest of the 1.05 zone shortly”.