FXStreet (Guatemala) – Eric Theoret, CFA, CMT FX Strategist at Scotiabank explained that the EUR/USD short-term technical are bearish, with caution.
Key Quotes:
“EUR has touched a fresh multi-month low with a clear break under 1.0600.”
“Risk levels from here include the April 2015 low at 1.0521 and the mid-March 2015 low at 1.0458.”
“However, we are cautious as we note the ongoing risk exhibited in the positive divergence between momentum indicators and spot as the MACD and RSI fail to confirm the fresh lows in EUR.”
“A consideration of the rising trendline off the November 2000-March 2015 lows suggests support around 1.0560. A clear break would raise the risk of a violent decline toward the 2015 lows and beyond.”
(Market News Provided by FXstreet)