EUR/USD: Significant gains will be hard to come by at the moment – Scotiabank

EUR/USD is nudging a little higher from the 1.05 area in quiet trade. Economists at Scotiabank analyze the pair’s outlook.

Oversold but near-term trends are bearish

Modest gains for the EUR on the session so far are mildly positive from a technical point of view but the EUR is battling against a tide of bearish momentum across short and medium-term studies which will make sustained gains hard to come by at the moment. 

The EUR looks oversold from a long-run point of view, however, which may limit losses from here. But significant gains will be hard to come by at the moment. 

Support is 1.0490/1.0500. Resistance is 1.0560/1.0570.