Above 1.0960/1.0965 targets additional gains to 1.11 – Scotiabank

EUR/USD consolidates after a retest of last week’s 1.0965 high. Economists at Scotiabank analyze the pair’s outlook.

Scope for losses is limited

EUR gains have slowed over the past week, with EUR progress blocked by retracement resistance at 1.0961 (61.8% Fibonacci of the H2 decline in spot).

The underlying trend higher in the EUR looks solid, if a little overextended in the short run – which may account for the sideways range trading seen recently. 

Scope for EUR losses is limited, with firm support likely to emerge in the upper 1.08s in the short run.

Above 1.0960/1.0965 targets additional gains to 1.11.