EUR/USD shows underlying resilience, supported on moderate dips for now – Scotiabank
|EUR/USD holds range after Eurozone data shows inflation slowing in November. Economists at Scotiabank note that the pair is likely to remain resilient after recent price action.
EUR/USD to remain better supported on moderate dips for now
“Slower headline prices might provide ECB policymakers with the grounds for a slowdown in the pace of tightening – to 50bps – in Dec markets seem to be thinking but double-digit prices and stubborn core inflation will still likely worry the hawks. We look for EUR/USD to remain better supported on moderate dips for now.”
“The EUR is managing to hold in a relatively tight range around 1.0350 despite the negative price action seen earlier in the week (big, bearish rejection of the 200-day MA). That is no mean feat and suggests some underlying resilience in the EUR at this point.”
“We spot intraday support at 1.0320, firmer at 1.0240/50. Resistance is 1.0380 and (strong) at 1.0500/10.”
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