EUR/USD: Limited scope for softness from here – Scotiabank

EUR/USD regains 1.10. Economists at Scotiabank analyze the pair’s technical outlook.

Trend dynamics are bullish

Trend dynamics are bullish – the EUR is above key MA resistance (40-DMA, which is now support at 1.0850) and has the backing of solid trend strength signals on the short, medium and long-term DMI studies. That should mean ongoing pressure towards the topside (1.12/1.13) and limited scope for EUR softness from here. 

What the EUR must avoid now is topping out above 1.10 and falling back through the upper 1.06s (potential Bearish H&S pattern).