EUR/USD slides under 1.09. Economists at Scotiabank analyze the pair’s technical outlook.

Gains stall around 100-DMA

Weak, early price action gives the short-term chart a negative look on the face of it. Spot gains stalled around 1.0930 (100-DMA) in European trade, dumping spot back to the upper 1.08s. There is, however, a clear, rounded low developing on the intraday chart this week and minor setbacks are common for these sorts of technical features. 

Minor consolidations are typically followed by a more dynamic phase (bullish, in this case) of market movement