According to FX Strategists at Scotiabank, the pair appears to have found solid support in the low-1.2200s.
“Spot is little changed at the lower end of the broader consolidation range in place for the past few weeks, however, and we still rather feel that the EUR offers some value between 1.2150/1.2250. The Eurozone economy is gearing down slightly after a period of robust growth but fundamentals remain constructive and policy makers continue to position markets for an end to the ECB’s asset purchase programme later in the year. We still rather think EUR and EUR-denominated assets are under-owned in global portfolios”.
“Short-term price action still looks a little soft but there are signs of a firmer bid developing for the EUR in the low 1.22 area on the short-term chart. We spot resistance at 1.2260 and would expect the market to squeeze higher towards 1.2280/00 on a push through this point on the day”.
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.