EUR/USD expected to break below 1.0560 – Scotiabank

Shaun Osborne, Chief FX Strategist at Scotiabank, sees there is scope for the pair to drop further beyond the 1.0560 area.

Key Quotes

“Spot has stabilized around 1.06 and while we are alert to the risk of a short squeeze ahead of the December holidays, we generally feel the broader bear trend will persist”.

“Price action overall yesterday was quite negative, reinforcing our view that EURUSD gains are likely to struggle near-term through the upper 1.06s/low 1.07s”.

“We continue to view EURUSD gains as a selling opportunity. EURUSD losses should resume below 1.0565 short-term support”.