FX Strategists at Scotiabank stay neutral/bullish in the near term, allowing for a potential test of the mid-1.1800s.
Key Quotes
“Bearish momentum signals have softened considerably from oversold levels and the RSI is now at 45. DMI’s are converging and the 21 day MA (1.1755) has been broken”.
“We are somewhat concerned about the medium-term implications of the crossing of the 50 day MA (1.2018) below the 200 day (1.2012), the ‘death cross’.
“However the near-term balance of risk appears to favor EUR strength and we look to near-term gains toward the early May closing high around 1.1850. Near-term support is expected at 1.1720″.
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