EUR/USD: headed to parity? - Scotabank

Analysts at Scotiabank noted that relative central bank policy remains dominant, pulling EUR lower as the U.S.-Germany 2Y yield spread pushes to fresh multi-decade lows under -210bpts.

Key Quotes:

"Short-term measures of implied EUR volatility are climbing, and we continue to highlight the risk of further weakness toward parity."

"EUR/USD short-term technicals: bearish—EUR is delivering a bearish outside candle and signals are broadly bearish across a range of both trend and momentum indicators."

"The RSI remains relatively muted at 35, leaving ample space for further downside."

"EUR has broken near-term support at the 9 day MA (1.0431) and we continue to highlight the risk of further downside toward parity."