EUR/USD has continued to pivot around the 1.10 area within familiar ranges, with US data having little impact, while investors await the ECB meeting Thursday. According to Shaun Osborne, Strategist at Scotiabank, the technical outlook remains negative.
“Eurozone-US 2Y spreads have narrowed modestly in the past few sessions but remain close to recent, multi-year peaks and continue to provide firm underlying support for the USD. We remain bearish on the near-to-medium term outlook for EURUSD (recall that the Oct-Nov period of the year typically sees spot weaken).”
“EURUSD short-term technicals: negative—Despite the EUR’s push higher yesterday, there is little in the charts to suggest that spot has the legs to extend gains. In fact, we see strong resistance overhead from the mid 1.10 area through the low 1.11s. Intraday patterns look soft after the earlier peak near 1.1025.”