EUR baulks at pushing through 1.0590 resistance – Scotiabank
|A rebound in French markets following this week’s political turmoil has done little for the EUR, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Spot remains well-supported near the highs
“Markets note Eurozone wage growth eased in Q3, giving the ECB policy hawks a path to support a 25bps rate cut next Thursday. A 1/4-point rate ease is fully priced in (swaps reflect around 26bps of anticipated easing).”
“December seasonals for the EUR are strongly positive, however, and declining political risk should give the EUR an opportunity to stabilize or firm a little more in the short run. The EUR rose to challenge short-term resistance and potential bull break out trigger at 1.0590 yesterday but failed to push on.”
“Spot remains well-supported near the highs this morning and price signals continue to lean bullish on the short-term chart as bullish trend momentum strengthens a little. A push above 1.0590/00, which could drive a squeeze to the mid/ upper 1.06s, at least, needs to come soon though. Support is 1.0515/20.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.