EUR/USD: A deeper drop towards 1.04/1.05 is a real possibility – Scotiabank

EUR/USD slips to low 1.06s. Economists at Scotiabank believe that the world’s most popular currency pair could sustain a sharp fall to the 1.04/05 zone.

A retest of last week’s low at 1.0613 looks inevitable

“There is a soft undertone to price action here, even if movement is relatively limited.” 

“Sustained losses below support at 1.0680 points to more EUR weakness ahead; a retest of last week’s low at 1.0613 looks inevitable at this point and a deeper drop towards 1.04/1.05 is a real possibility (1.0461 is the 38.2% retracement of the 0.95/1.10 rally).”