Scotiabank: EUR/USD remains in the grip of bears

European Central Bank meeting in terms of monetary policy is expected to preserve the status quo, but forecasts for the economy and inflation could be adjusted slightly in the direction of improvement, according to the bank.

However, soon is expected to raise rates by the FED, as the bank question the steady rise in EUR/USD.

Currently the single currency is trying to correct, but prospects remain less important, taking into account the bear market last four consecutive weeks, formed after the pair failed to break above 1.16 dollars, specify experts.

The loss of support in 1.12 - 1.13 dollars has prompted the couple to enter the bearish channel in the region with a peak of 1.1175 dollars. Thus, in the near future any attempts to growth will likely be limited to the area 1.12, say analysts from the bank.