EUR/USD outlook bullish near term – Scotiabank

In view of FX Strategists at Scotiabank, the pair’s stance has now shifted to bullish in the short-term horizon.

Key Quotes

“EURUSD has been capped by trend resistance off the mid-April high above 1.24 consistently over the past three weeks but spot is making its first real attempt at breaking above the trend line resistance (1.1862, now support intraday) this morning”.

“Daily patterns are also turning a little more positive; a firmer close today (the higher, the better) will add to corrective pressures in the short-term at least, we feel”.

“Chart patterns support the impression of bargain hunters stepping in around the recent lows to provide the EUR with a little more support than in the recent past. Gains should extend more above 1.1895/00 intraday”.