The EUR/USD pair corrects oversold conditions after its decline past 1.12. Nonetheless, the undertone remains bearish, in the view of economists at Scotiabank.
Break above 1.13 needed to alleviate downside pressure
“The overall trend in the EUR remains clearly bearish and it would take a cross of 1.13 to at least suggest that the EUR/USD will not continue its drop to 1.10/11.”
“After the 1.12 zone, yesterday’s low of 1.1186 is support followed by 1.1165/70 (summer 2020 lows).”