EUR/USD: Firm support should develop on minor dips to the mid-1.07s – Scotiabank

EUR/USD should find support on modest dips, economists at Scotiabank report.

Downside pressure likely to be limited for now

Short-term trading patterns suggest the EUR may have reached a short-term peak (via the formation of a bearish ‘evening star’ pattern on the six-hour chart). Downside pressure on spot is likely to be limited for now, however. 

Short, medium and longer-term technical signals are leaning bullish and bull trend momentum signals are aligned positively for the EUR on the intraday and daily oscillators. 

Firm support for the EUR should develop on minor dips to the mid-1.07s.