EUR/USD: broader risks are tilting towards a rebound to 1.17/1.18 - Scotiabank

Analysts at Scotiabank argue that EU/RUSD short-term technicals are neutral/bearish as we move into the FOMC, however, are feeling that broader risks are tilting towards a rebound to 1.17/1.18

Key Quotes:

"EUR/USD has drifted steadily lower from yesterday’s intraday peak near 1.15 and short-term trends look soft on the session so far, suggesting some risk of an extension towards the mid/upper 1.13s."

"We still rather think the EUR set an important low at 1.13 last week, however, and feel that broader risks are tilting towards a rebound to 1.17/1.18."

"Trend signals are bearish on the intraday studies but flat more broadly, suggesting a range-trade environment is likely to persist."