Investors want to build precautionary buffers in addition to their immediate needs. This keeps downward pressure on EUR/USD for the foreseeable future, in the opinion of strategists at TD Securities.
Key quotes
“The outlook for EUR/USD can pivot quickly. EUR has seen its share of volatility in recent days. Compared to other G10 currencies, however, it has been rather well-behaved.”
“Spot has now pushed below the 20 February lows at 1.0778. If sustained, this is the clear break lower we have been looking for.”
“Given the high degree of intraday volatility, we would like to see a weekly close below 1.0770 before drawing too many conclusions.”
“We do suspect, however, we are transitioning into a new, lower trading range. Our immediate focus now shifts to a test of 1.0570, although we note the early-2017 lows at 1.0341 could also come into view.”
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