EUR/USD: Scotiabank believes short-term trend is bearish with possible hit of 1.05 level

Scotiabank's technical analysis shows that the EUR/USD short-term downtrend is well established and increases the risk of pushing below last week's low:

"EUR/USD tested and failed against the 200-day moving average and fell below the 50-day moving average last week. The technical reading seems weak with 1.09 easily rejected. The short-term downtrend is well established and increases the risk of pushing below last week's low of 1.0652. We expect a break below 1.0650 which should send the EUR/USD to 1.05 fairly quickly. We are seeing resistance at 1.0700/05."