EUR/USD holds in a narrow range around 1.06. Economists at Scotiabank think risks are tilted to the downside for the Euro in the next few weeks.

More range trading looks likely in the near term

“We continue to think the EUR has reached a short-term peak and may consolidate somewhat in the next few weeks. The likelihood of more ECB tightening steps in early 2023 suggests the EUR will remain supported on dips, however.”

“More range trading looks likely in the near term. Spot is more or less mid-way between support at 1.0575/80 and resistance at 1.0655/60.” 

“Trend signals are weak on the short-term studies and the bull trend evident on the daily oscillator signal is clearly over-extended.”