EUR/USD keeps the neutral bias near-term – Scotiabank

According to Eric Theoret, FX Strategist at Scotiabank, the pair’s outlook remains neutral following the recent price action.

Key Quotes

“The greatest near-term risk for EUR lies with Thursday’s ECB as market participants consider the lack of clarity with regards to the near-term path for policy. Expectations are generally muted, with the bulk of Bloomberg survey respondents looking to no change in either the deposit rate (-40bpts) or the monthly pace of asset purchases (80bn)".

"Risk of a disappointment is thus limited, reducing the risk of a replay of the March/December experience”

“Momentum signals are neutral and the ADX is trendless. Short-term MA’s are bearishly aligned however EUR appears unable to make a clear break of its recent congestion range around 1.12. We look to near-term resistance above 1.1280 and highlight the recent support observed around 1.1150”.