EUR/USD slides back to the mid 1.10s. Although the pair seems far from the test of 1.12, economists at Scotiabank still expect EUR/USD to break above this level.

A break of 1.10 on the day would threaten the bottom of the channel around 1.0990

“Steep losses yesterday from an intraday high of 1.1185 to a close about 120pips lower leave the EUR far from the test of 1.12 that would have strengthened the technical picture. The EUR is nevertheless trading in a bullish channel since the early March lows that is targeting an eventual break of the 1.12 mark.” 

“A break of 1.10 on the day, which stands as the next support marker after 1.1035/40 would threaten the bottom of the channel at ~1.0990.”

“Resistance is ~1.1075 and the figure area.”