EUR/USD danger zone for further losses just under 1.0635

A note from Scotia late last week with a level to watch in the euro.

In brief:

• EUR sentiment has been weighed by soft economic data from the Eurozone and signs from the ECB that its policy tightening cycle is complete.
• An overhang of long EUR positioning among investors and weak price trends suggest the near-term risk at least may be geared to more EUR losses.
• A move to new lows for the year (below 1.0635) would add to the weak EUR tone.