EUR/USD resistance awaits near 1.1250 – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, has noted the neutral-bearish stance on the pair in the near term.

Key Quotes

“Tuesday’s impressive EUR reversal lost momentum above 1.12 and its rally failed to deliver gains above Monday’s open. Momentum signals remain neutral and the ADX is trendless. We look to resistance above 1.1250 and anticipate a fresh attempt at a break below the longer term (50/100/200) MA’s clustered between 1.1165 and 1.1206”.

“Spreads remain extended, in a EUR-negative manner with the 2Y Germany-U.S. spread holding steady around -150bpts. Lastly, we note that the most recent round of PMI’s has delivered a mixed picture for economic activity with a slight softening in the pace of expansion across the major economies”.