The EUR/USD currency pair is slipping to the low 1.06s, and economists at Scotiabank are forecasting a sharp fall to the 1.04/05 zone. The current soft undertone to price action suggests that losses below the support at 1.0680 could be sustained, leading to a retest of last week’s low at 1.0613. If this occurs, a deeper drop towards 1.04/1.05 is a real possibility.
The EUR/USD is a popular currency pair, and is often used as a benchmark for the global economy. This is because the EUR is the official currency of the European Union, and the USD is the official currency of the United States. Therefore, the pair is considered to be a reflection of the relative strength of the two economies.
The current soft undertone to price action suggests that the EUR/USD is likely to continue its downward trend. This could be due to a number of factors, such as a weakening of the euro due to the ongoing trade dispute between the US and the EU, or a strengthening of the US dollar due to the US economy being in a stronger position than the EU economy.
The current fall to the low 1.06s could be a sign of further weakness in the euro, and a retest of last week’s low at 1.0613 could be a sign of further weakness. If the EUR/USD does break below this level, it could lead to a deeper drop towards 1.04/1.05. This could be due to a weakening of the euro, or a strengthening of the US dollar.
It is important to note that the EUR/USD is a volatile currency pair, and is subject to sudden fluctuations. Therefore, it is important to monitor the pair closely, and to be aware of any potential risks.
In conclusion, the EUR/USD is slipping to the low 1.06s, and economists at Scotiabank are forecasting a sharp fall to the 1.04/05 zone. The current soft undertone to price action suggests that losses below the support at 1.0680 could be sustained, leading to a retest of last week’s low at 1.0613. If this occurs, a deeper drop towards 1.04/1.05 is a real possibility. It is important to monitor the pair closely, and to be aware of any potential risks.
