EUR/USD bullish/neutral, now targets 1.2598 – Scotiabank

FX Strategists at Scotiabank noted the pair could now target the boundaries of 1.2600 the figure.

Key Quotes

“EUR is entering the NA session with a modest 0.2% decline vs. the USD following a full retracement of its early Asian session rally that delivered a fresh (albeit short-lived) multi-year high above 1.2550. There have been no major fundamental releases and comments from the ECB’s Coeure were relatively neutral as he focused on the sequence of policy normalization and suggested that changes to forward guidance would be discussed in ‘early 2018’.

“EUR has tested a fresh multiyear high above 1.2550 however the gains have not been confirmed by momentum and the RSI remains relatively muted at 64. We highlight the absence of any significant resistance ahead of the 61.8% retracement of the 2014-2017 decline at 1.2598 and look to near-term support at 1.2450 and 1.2420”.