Gains through 1.0540/1.0545 may signal a push to the low 1.06s – Scotiabank

EUR/USD is holding in a tight range just above 1.05. Economists at Scotiabank analyze the pair’s outlook.

Charts suggest sell-off steadying

Short-term price action is flat but moderate EUR gains from the early week low do point to some – potential – strength (it’s all relative) in the EUR, with a bullish ‘morning star’ signal on the daily chart. 

EUR gains through 1.0540/1.0545 short-term trend resistance may signal a push to the low 1.06s. 

Support is 1.0480/1.0490 and 1.0450.

See: EUR/USD may lack enough buyers above the 1.0530/1.0550 area – ING