The Euro (EUR) has recently seen a slight recovery from its recent lows against the US Dollar (USD), but it has struggled to break above the 1.03 level, according to Scotiabank’s Chief FX Strategist Shaun Osborne. The EUR has shown some positive momentum following a bullish ‘hammer’ signal on the 6-hour candle chart, but the overall trend remains bearish. The recent data on German unemployment, which showed a rise of 10k in December, was better than expected, with the unemployment rate holding steady at 6.1%.
Despite the potential for a minor reversal in the short-term, the broader trend for the EUR remains bearish, with resistance forming around the 1.03 level. However, there is a possibility for a minor squeeze above this level towards 1.0360/90, where selling interest is likely to increase. On the downside, support is seen at 1.0240/50. Osborne believes that the EUR is currently undervalued, but he does not anticipate a significant pickup in the near future.
Overall, while the EUR has seen a slight rebound in the short-term, the broader trend remains bearish. The recent data on German unemployment was better than expected, but there are still challenges ahead for the EUR. Resistance is forming around the 1.03 level, and any potential rally is likely to face selling interest around the 1.0360/90 level. Support is seen at 1.0240/50, and the overall outlook for the EUR remains uncertain.
In conclusion, the EUR has seen a minor rebound from its recent lows against the USD, but the broader trend remains bearish. The recent data on German unemployment was better than expected, but there is still little reason to expect a significant pickup in the EUR at this point. Resistance is forming around the 1.03 level, with potential for a minor squeeze towards 1.0360/90 before facing better selling interest. Support is seen at 1.0240/50, and the outlook for the EUR is uncertain in the near term.
