EUR/USD continues to trade in a tight range between 1.13-1.14. In the opinion of Scotiabank economists, the slow pace of normalization by the European Central Bank (ECB) could drag the pair down to the 1.10 level.
Long-term oscillators remain bearish
“Short-term and medium-term trend oscillators are flat, suggesting a continuation of the choppy range-bound move for now. However, long-term oscillators remain bearishand we believe that this continues implying resistance to EUR gains above 1.14 and very firm resistance at 1.15 In the next weeks”.
“We believe that ECB’s slow path to monetary policy normalization leaves EUR prone to medium-term weakness (and continues to point to a year-end rate of 1.10 against the USD).”
Source: Fx Street
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