EUR/USD has bounced off the 1.09 level to reverse the bulk of Friday’s losses. However, economists at Scotiabank expect the pair to remain under pressure while below the 1.10 mark.

Technical picture remains decidedly bearish

“Despite today’s gains the EUR technical picture remains decidedly bearish.” 

“The currency will need to at least test the 1.10 level shortly (after the intraday peak of 1.0990) or risk the broader downtrend continuing to weigh on it to a re-test of 1.08 in the coming days.”

“The mid-1.10s stand as resistance after the figure.”

“Support below 1.0940/50 is the 1.09 area followed by the 1.0850 zone.”