Shaun Osborne, Chief FX Strategist at Scotiabank explained that EUR/USD looks like it is consolidating; after two net daily losses (Friday and Monday), a third looks possible today.
Key Quotes:
“Modest weakness off last week’s high can still be construed as potentially positive (possible bull flag) but the slide is looking somewhat extended and, if the daily losses continue to mount, price action will tend to look weaker, rather than neutral.
All this to say that price trends are mixed at the moment but we think last week’s rejection of the mid 1.13 area may represent an important, short-term peak which may prompt the market to dip to the 1.10 area.”
(Market News Provided by FXstreet)