EUR/USD: firm support near 1.17 poses a threat to short-term bearish expectations (Scotiabank)

Scotiabank expresses doubts about the ability of the EUR/USD to continue its decline towards 1.16.

"The short-term EUR/USD price action reflects two things: 1) the EUR/USD finds firm support on declines towards 1.17, but 2) also sellers on rebounds.

The recent technical signals remain bearish for the EUR/USD, but the pair's support on the downturn still seems firm and suggests that instead of a fall towards 1.16 (where we expected solid support), the Euro-Dollar could develop a new rally above 1.18."