EUR/USD neutral/bearish near term – Scotiabank

According to Chief FX Strategist at Scotiabank Shaun Osborne, the pair’s near term outlook remains neutral/bearish.

Key Quotes

“EURUSD remains relatively well supported but looks rich versus our fair value model’s equilibrium estimate (1.0840). We think wide spreads in the USD’s favour and signs that the recent out-performance in European stocks relative to US market may serve to check the EUR’s advance in the near term”.

“EURUSD remains capped below the peaks reached earlier in the week but the market has failed to develop much downside momentum, with noted support in the upper 1.11s (1.1182 today) holding the market. We still rather think short-term price patterns point to corrective risks with gains to the mid/upper 1.12s attracting strong selling pressure this week. Bearish below 1.1180 for 1.1075/80”.