EUR/USD support emerges at 1.1650/20 – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, sees the pair’s stance at neutral/bearish in the near term horizon.

Key Quotes

“A reminder that next week’s Jackson Hole speech from President Draghi is said to contain no major shift in tone. The 10Y Germany-U.S. yield spread is hovering just above –180bpts and EUR risk reversals remain neutral across a range of time horizons”.

“Daily momentum indicators are threatening a push into bearish territory and DMI’s have converged. The 9 day MA appears poised to break below the 21 day MA. Near-term support levels include 1.1650 and 1.1620 followed by a sizeable gap toward the lower 1.15 area. Near-term resistance is expected above”