EUR/USD: Close below 1.10 to stand out as a bearish signal – Scotiabank

EUR/USD has swung around the 1.10 mark for the better part of the past four days. Economists at Scotiabank note that a close below this level would stand out as a clear bearish signal for the euro.

Support is around the 1.10 figure area followed by 1.0960/65.“A close below 1.10 for the week would stand out as a clear bearish signal for the EUR.” 

“The EUR’s bearish trendline from mid-Feb comes in as resistance at ~1.1050, with the mid-figure area broadly set to limit upside followed by 1.1070 and the 1.11 zone.” “Support is around the 1.10 figure area followed by ~1.0960/65 that has held up the EUR in three consecutive sessions; ~1.0950 and ~1.0925 follow.”

EUR/USD clings to modest gains above 1.1000.EUR/USD gained traction in the early American session and climbed into positive territory above 1.1000. The risk-positive market environment, as reflected by rising US stock indexes, is making it difficult for the greenback to find demand and helps the pair edge higher.

EUR/USD News 

GBP/USD reclaims 1.3200 supported by risk flows.GBP/USD fell toward 1.3150 in the early European session after disappointing Retail Sales data from the UK but managed to erase its daily losses. With risk flows starting to dominate the financial markets, the pair is posting modest gains above 1.3200.

GBP/USD News 

Gold fluctuates near $1,950 despite rising US T-bond yields.Gold declined toward $1,940 earlier in the day as the benchmark 10-year US T-bond yield climbed to fresh multi-year highs near 2.5%. The broad-based selling pressure surrounding the dollar, however, helped XAU/USD recover above $1,950.

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