EUR/USD: consider downside risks to the Fed’s 2018 - Scotiabank

Analysts at Scotiabank explained that the EUR is up vs. the USD, extending its recent rally in an environment of broad-based USD weakness and threatening a push through the November 15 high. 

Key Quotes:

"Fundamental releases are providing support as market participants consider stronger than expected and fresh highs in the preliminary PMI’s for France, Germany, and the euro area. 

The outlook for relative central bank policy appears set to provide medium-term support as market participants consider downside risks to the Fed’s 2018."

"EUR is extending Wednesday’s rally and threatening the November 15 high, opening up the risk of a push to levels last seen in mid-October. Momentum signals are bullish, DMI’s are bullishly aligned, and short-term MA’s are confirming. Resistance is expected at 1.1880 and 1.1950."