EUR/USD: Losses through the low 1.0700s on a sustained basis target a drop to 1.0610 – Scotiabank

EUR/USD tests 1.0700 area. Economists at Scotiabank analyze the pair’s outlook.

Gains back above 1.0805/1.0810 are needed to boost the technical outlook

Spot has lost support at 1.0725 (lows from December and early February) and losses through the low 1.0700s on a sustained basis (1.0712 is the 61.8% retracement support of the EUR’s Q4 rally) target a drop to 1.0610 (76.4% Fib at 1.0611). 

A rebound back through 1.0725 steadies the EUR in the short run but gains back above 1.0805/1.0810 are needed to boost the technical outlook.