EUR / USD: Technical outlook points towards a substantial drop to 1.14

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The earnings of the EUR/USD through the low of 1.1650 last week they have faded. From a technical point of view, the pair points to a fall to 1.14, as reported Scotiabank economists.

Yield spreads to put pressure on the euro

“As ECB officials remain generally subdued in their policy outlook, we believe that yield spreads will continue to weigh on the EUR in the short to medium term.”

“The drift of the spot back to the 1.1575 / 85 area today leaves it vulnerable to further pressure at the 1.15 area.”

“We believe that the broader technical indicators continue to indicate a margin for the EUR / USD losses to extend to 1.14 in the short term (2-4 weeks), while the medium term indicators suggest losses in the 1.11 zone “.

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