Losses through recent support around 1.0785/1.0795 to extend – Scotiabank

EUR/USD’s break under support in the upper 1.0700s means more losses are likely, economists at Scotiabank say.

Resistance is 1.0795/1.0800

Spot losses through recent support around 1.0785/1.0795 (100-Day Moving Average and 50% retracement support from the EUR’s Q4 rally) suggest more, corrective EUR losses towards 1.0712 (61.8% Fibonacci). 

Trend momentum signals are aligned bearishly for the EUR on the intraday and daily DMIs which will limit the scope for EUR gains. 

Resistance is 1.0795/1.0800.

See – EUR/USD: The direction of travel lies to the 1.0700 area – ING