EUR/USD eyes next support at 0.9720 amid renewed weakness – Scotiabank

The euro cannot resist the dollar’s advance. Economists at Scotiabank highlight the key technical levels to watch.

Technical pattern of trade has been consistent in the past few months

“Since the middle of the year, EUR rebounds have been limited to the 40-Day Moving Average –  or levels close to that –  ahead of renewed weakness and new cycle lows. So far this week, that pattern is holding, with the EUR capped in the upper 0.98s (40-DMA at 0.9878 today) and turning soft subsequently. New cycle lows remain some way off, however (below 0.95). 

“In the short-run, we see support at 0.9720 and 0.9675/80 below there.”

“Resistance intraday is 0.9800/10.”