Consolidating above 1.11 – Scotiabank

EUR/USD is consolidating above 1.11 after three solid days’ worth of gains to reach its highest since December, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

A push above 1.1140/50 to see a test of low 1.12s

“There were no major data reports this morning and tomorrow’s Eurozone negotiated wages data for Q2 are still awaited to possibly provide some guidance on ECB policy risks.”

“Spot is consolidating just under minor resistance at 1.1140 (December’s peak). Very stretched intraday and daily oscillator signals suggest a pause—at least—in the EUR’s recent bull run in the near-term.”

“Minor dips to the mid/upper 1.10s should meet firm support, however. A push above 1.1140/50 targets a drop to the low 1.12s.”