EUR/USD neutral/bearish, sell on strength – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne noted the pair’s outlook remains neutral/bearish, while he also recommended selling on occasional rallies.

Key Quotes

“We remain fundamentally bullish on the USD and bearish on the EUR from a fundamental point of view (growth, policy divergence) and expect political risk may weigh on the EUR a little more as Q1 progresses and investors start to focus on the French presidential election (April)”.

“EURUSD’s overnight advance to the low 1.06 area effectively retests last week’s high but the EUR is showing no real conviction and gains appear to have been easily rebuffed around the 1.0625 resistance zone”.

“We think the broader 1.0350/1.0650 range will prevail for now, as trend strength indicators are mixed/neutral across a range of time frames. We favour selling rallies and look for a return to the low 1.05 area over our session”.