Scotiabank notes that the current drop in EUR/USD on the Forex still corrective at this stage.
«EUR/USD retains a tone of weak technical.
We note, however, a strong potential support to the 1.1725/35, represented by the 23.6% retracement of the rally from April to September and the moving average 200 weeks EUR/USD has broken to the upside in mid-August for the first time since 2014.
The price trend seems to be solid on the studies of the short-term, but the signals are mixed on the oscillators of the longer-term, suggesting that the downturn remains fix at this stage.
A break clear under the support in the area of 1.17 would suggest the risk of falling towards 1.15 in the coming weeks. «