EUR/USD is on the back foot. The pair is set to extend its downfall, however, the 1.05 level holds for now, economists at Scotiabank report.

Bullish progress dented

“Multiple failures to hold a bid above 1.06 (and above its 50- day MA) and the correction over the past 24 hours would suggest the EUR will continue on its multi-month downtrend. But it is still too early to call for a significant leg lower while the 1.05 level (and high 1.04s) continues to hold.”

“Support is the daily low of 1.0486 followed by 1.0469 and the mid-1.04s.” 

“Resistance is 1.0535/40 and ~1.0560 ahead of the big figure.”