EUR/USD neutral/bullish short-term, needs to surpass 1.1635/40 – Scotiabank

FX Strategists favour further upside around the pair as long as it manages to break above the low-1.1600s.

Key Quotes

“EURUSD found support in the 1.1540/50 area overnight and is pushing higher again in early North American trade”.

“Trend signals are bullishly-aligned on the short-term DMI studies, suggesting that spot should remain better supported. But the EUR really needs to crack on through resistance in the low 1.16s to extend. We see resistance at 1.1611 (40-day MA) and 1.1635/40 (8 Aug high)”.

“We think spot may move +/- 100ticks on a break either side of this range and rather favour gains, given the situation on the oscillators”.