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EUR/USD will extend its gains towards the lower zone of 1.0500 – Scotiabank

The steady gains in EUR/USD since Tuesday leave the pair trading relatively firmly. The Scotiabank economists say the euro is on the cusp of a higher rise.

EUR/USD Approaches Test of 200-Day SMA

“Short-term trading patterns are positive, with the Euro steadily gaining from its early-week low and accelerating higher yesterday after recovering to the 1.03 zone.”

“The EUR/USD is about to retest the mid-November high (1.0479) on the short-term chart and we continue to think that gains should extend to the 1.05 zone (retracement resistance point) after the break above the resistance of the long-term trend. More significant, however, is the fact that the euro is about to (conclusively) recapture its 200 DMA, which it last saw in June 2021. Breaking above this benchmark would be very supportive from a trading standpoint. market”.

Source: Fx Street

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