EUR/USD needs to hold the 1.07 area to retain any chance of improving in the short run – Scotiabank

Economists at Scotiabank analyze EUR/USD technical outlook.

A push well through 1.0750 should prompt additional gains

Short-term price trends retain a potentially positive undertone for the EUR but spot needs to hold the 1.07 area to retain any chance of improving in the short run. 

Short-term trading patterns continue to reflect a small, ‘rounded low’ on the intraday chart which implies steady bargain hunting for the EUR on recent softness. EURUSD gains did, however, clearly stall around 1.0750 on Monday and that level remains key resistance in the short run. 

A push well through 1.0750 should prompt additional gains to the low 1.08s.