Analysts at Scotiabank explained that EUR/USD failed to make any impression on resistance in the low 1.15s yesterday and heavy selling pressure that emerged through the European session leaves the market trading below minor support at 1.14330/35 on the day.
Key Quotes:
“Trend momentum has picked up on the shorter term DMI studies, which suggests the EUR is perhaps more vulnerable to an extension lower to retest strong support at the Aug low at 1.1302.”
“If we have learned anything us over the past few months, it is that price action that looks like it may break out from the sideways range around 1.15/1.16 typically fails to flourish and should be faded.”
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