EUR/USD is making a weak attempt to recover from the lows on Friday, remaining short of a test of 1.12. A break above here would be the first sign of a possible reversal in the EUR’s losses, economists at Scotiabank report.

Price trends point to an imminent test of 1.11

“The currency’s quick drop from the high 1.14s through the low 1.10s over the course of two weeks has maybe briefly stalled as it nears oversold conditions. However, price trends point to an imminent test of 1.11, with little in the EUR’s way to prevent then a test of 1.10.”

“A topside break of 1.12 would be the first sign to watch for a possible reversal in the EUR’s losses.”