EUR/USD bearish in the short term – Scotiabank

FX Strategists at Scotiabank stay bearish on spot in the near term, with minor support emerging at 1.1620/10.

Key Quotes

“Longer term bond spreads, which had been narrowing and supporting EURUSD gains in the past few weeks, have steadied and started to widen again, if only modestly, suggesting scope for additional EUR gains is limited from here at the moment”.

“EURUSD closed on a weak note yesterday forming a daily (bearish) shooting star. Other bear reversal signals seen since the start of the April rally have not yielded much more than 1.5% or so dip in the EUR, which suggests losses may not extend much more than the 1.15 area. Minor supports are at 1.1610/20 and 1.1580 but then not much until 1.1445/75”.