Euro gains stall around retracement resistance. The economists of Scotiabank analyze the outlook for EUR/USD.
The Euro could consolidate
Gains are somewhat outpacing the narrowing of yields between the Eurozone and the US, and the Euro’s gains could slow or consolidate in the near term, unless Thursday’s Eurozone PMI data brings positive news that reinforce the bullish momentum.
The general upward trend of the Euro remains solid, but the gains have been very significant in a short space of time and the maximum reached today by the Euro right at the 61.8% decline of the July/September drop deserves attention. In cash, there could be some consolidation, that is, a downward drift.
Support on the declines should be firm, with signs of bullish momentum in the short, medium and long term.
Supports at 1.0840/1.0880.
Source: Fx Street
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