EUR/USD: Poised to break firmly under 1.05 in the near-term – Scotiabank

The EUR is tracking its peers’ losses against the dollar. In the view of economists at Scotiabank, the shared currency remains prone to weakness on fundamentals.

Resistance after 1.0570/80 aligns at the 1.06 zone

“The EUR is set to continue to trade on the defensive amid weak growth prospects and priced out ECB expectations, as it looks to break firmly under 1.05 in the near-term.”

“The 1.05 zone remains a strong floor and triggering EUR buying pressure (as it remains in oversold territory). Below the figure area, the recent low of 1.0472 stands as key support ahead of the figure and the 2020 low of 1.0341.”

“Resistance after 1.0570/80 is the 1.06 zone followed by the mid-figure.”