EUR/USD stays bullish near term – Scotiabank

FX Strategists at UOB Group noted the pair’s near term outlook is tilted to the bullish side.

Key Quotes

“Short and medium term price signals turned bullish for EURUSD yesterday (outside range signal intraday, bullish key reversal on the daily chart), reversing the weak technical tone in the market that has persisted over the past week”.

“Follow-through EUR buying has moderated somewhat through the upper 1.16s and we should be under no illusion that the EUR still has a lot of work to do in order to gain materially”.

“However, the bounce from the 1.15 point—again—does firm up support for EUR and opens the door for spot to retest the topside of the range (1.1800/50) in the next week or two perhaps. 1.1850 is now key resistance”.