EUR/USD trades narrowly. As long as the world’s most popular currency pair stays below the 1.11 level, a re-test of 1.10 and a subsequent fall to 1.09 is on the cards, according to economists at Scotiabank.

Euro is not out of the woods yet

“The EUR is not out of the woods yet, and we think it will still need to hold above 1.11 for longer or risk a re-test of 1.10 in the near-term that then targets 1.09.” 

“The daily high of 1.1070 is resistance followed by 1.1090/00, 1.1120, and the Thursday peak of 1.1137.”

“Support is ~1.1035 followed by 1.1010/00 and the mid-1.09s.”