EUR/USD: too early to call for a turn - Scotiabank

By FXstreet.com | July 31, 2014 AAA

FXStreet (Córdoba) - Eric Theoret, analyst at Scotiabank, notes the EUR/USD holds a bearish short-term perspective and commented it is too early to call for a turn.

Key Quotes



“EUR is soft, weighed by relative expectations and the broader theme of USD strength, as fundamental releases (generally offsetting) provided for little in terms of a reaction
in the exchange rate”.



“Euro area CPI was mixed as core stayed flat at 0.8% YoY while headline softened to 0.4%. German retail sales were stronger in June, employment figures were steady. Meanwhile the euro area unemployment rate improved unexpectedly”.



“EUR/USD short-term technicals: bearish—EUR is flirting with a break of Wednesday’s multi-month low, falling further below 1.34 as momentum indicators highlight an accelerated pace of decline”.



“The RSI is close to reaching oversold levels at 20, however we feel that it is too early to call for a turn and note the strong trend exemplified by an ADX at 37”.



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