Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro has edged marginally higher against the US Dollar after stabilizing from recent declines, with the currency pair attempting a modest rebound from lows in the upper 1.15 range. The analysis suggests the Euro faces limited downside risk at current levels, with trading parameters now clearly established following the recent selloff.
The stabilization comes after pressure on the single currency that pushed EUR/USD to test critical support zones above 1.15. Traders and foreign exchange desks are watching these technical levels closely as the pair seeks to establish a firmer footing. The defined range provides clearer parameters for positioning in what has been a volatile period for the major currency pair.
Market participants dealing in EUR/USD should note the potential for range-bound trading conditions in the near term as the Euro consolidates recent losses against the greenback.
FXnCO Insight
The established range around upper-1.15 levels offers traders defined risk parameters for EUR/USD positions, with limited downside suggesting potential range-trading opportunities.
Source: FXStreet