EUR/USD little changed in low 1.09s. Economists at Scotiabank analyze the pair’s outlook.
Underlying trend dynamics remain bullish
The EUR continues to consolidate. At the moment, spot is heading for an unchanged close on the week which does suggest some building resistance to the EUR advance around noted retracement resistance at 1.0960 (61.8% Fibonacci of the H2 EUR slide).
Underlying trend dynamics remain bullish, however, and still suggest limited scope for EUR weakness and ongoing pressure for EUR gains to extend.
Above 1.0960 targets 1.11.
Support is 1.0870/1.0875; loss of support here could see corrective EUR losses towards 1.0775.
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