EUR/USD extra gains seen above 1.1990 – Scotiabank

Strategists at Scotiabank remain neutral/bullish on pair, seeing further upside above the 1.1990 area in the short term.

Key Quotes

“ECB’s Lautenschlaeger said it was time to take the decision to scale back asset purchases. Tapering comments perhaps have a little more traction with investors as global central bank policy settings appear to be turning somewhat less accommodative. The comments added a little more positive momentum to the EUR on the session as the USD slipped broadly”.

EURUSD price action may have formed a base in the mid/upper 1.18s yesterday, suggesting that spot’s corrective drift lower from last week’s peak near 1.21 is complete. Gains through minor trend resistance at 1.1930 (now minor support). The EUR has a little more work to do in order to gain more appreciably; above 1.1990/00 turns the near term outlook more bullish, we feel”.

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