EUR/USD comes with a bearish bias - Scotiabank

By FXstreet.com | July 28, 2014 AAA

FXStreet (Guatemala) - Eric Theoret, Currency Strategist at Scotiabank explained that EUR risk remains biased to further downside, given the massive divergence to yield spreads and the acceleration observed in bearish momentum indicators.



Key Quotes



"Friday’s decline also highlights further downside risk to EUR given the negative reaction to Russia-related headlines, a reversal from the typical pattern observed since March. The reaction was likely the result of a focus on the consideration of escalating EU sanctions toward Russia with public officials voicing their support in spite of economic costs. Near term risk lies with broader developments, with no high level data scheduled for release before Wednesday."



"EUR/USD short-term technicals: bearish—both trend and momentum indicators are suggestive of further downside, however we note that the RSI has entered oversold territory between 20 and 30. Key downside levels include 1.3400 and the November 2013 low at 1.3296."



comments powered by Disqus
Related Forex Analysis
  1. US Dollar Aims to Extend Advance, Gold and Crude Oil Range-Bound
    Forex News

    US Dollar Aims to Extend Advance, Gold and Crude Oil Range-Bound

  2. USD/JPY trying to get above 109.50
    Forex News

    USD/JPY trying to get above 109.50

  3. EUR/USD Technical Analysis: Euro Trying to Expose 1.26
    Forex News

    EUR/USD Technical Analysis: Euro Trying to Expose 1.26

  4. US Dollar Technical Analysis: Working on Fifth Straight Gain
    Forex News

    US Dollar Technical Analysis: Working on Fifth Straight Gain

  5. USD/JPY Technical Analysis: Range-Bound Below 110.00 Mark
    Forex News

    USD/JPY Technical Analysis: Range-Bound Below 110.00 Mark

Trading Center