EUR/USD remained well-supported near yesterday’s highs for most of the overnight session before creeping above 1.16 ahead of the North American open, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret note.
Bullish trend momentum to help sustain gains through 1.16
“There did not appear to be any particular reason for the advance but we remain constructive on the outlook for the EUR, considering the challenges facing the USD. German Factory Orders for June were weaker than expected at –1.1% M/M (+1.0% forecast). Eurozone Retail Sales for June rose 0.3% as expected.”
“Spot has struggled to extend gains above 1.1590 (50% retracement of the late July drop) since Friday’s sharp rebound but is making a bit more progress in early trade so far today. Bullish trend momentum on the intraday charts should help sustain gains through 1.16 and extend towards 1.1640/50 in the short run—but a rebound through 1.17+ remains possible. Support is 1.1530/40.”