EUR/USD: Risk stays seen lower for another test of 1.12 – Scotiabank

EUR/USD edges above 1.13 on broader USD drop. However, economists at Scotiabank expect the world’s most popular currency pair to turn back lower towards 1.12.

Holding above 1.1250 to take some pressure off the euro

“The EUR is attempting another cross of 1.13 but selling pressure seems to remain at the figure area to prevent a test of the month’s range ceiling at ~1.1350.”

“Sideways trading looks set to continue in the near-term but longer-term signals point to further losses in the EUR toward a re-test of 1.12; holding above 1.1250, which is support after 1.1260/65, does take some pressure off the EUR.”