EUR/USD: Short-term technical undertone is still constructive – Scotiabank

EUR/USD drifts from upper 1.07s. Economists at Scotiabank analyze the pair’s technical outlook.

A rounded low is developing on the short-term charts – a bullish sign

Losses are moderate and the short-term technical undertone is still constructive. 

Price action through June so far reflects clear EUR accumulation on weakness – a rounded low is developing on the short-term charts after the EUR’s initial push higher at the start of the month. This is a bullish sign which is typically followed by more dynamic gains after a minor consolidation, such as we may be seeing now. 

Support is 1.0740/50. Resistance is 1.0790/1.0810.