EUR/USD: Rebound back to and through 1.0930 needed to regain some positive traction – Scotiabank

EUR/USD edges back after another 1.0925 rejection but bull trend intact, economists at Scotiabank report.

Limited scope for EUR losses

“EUR gains peaked around 1.0925/30, setting up a minor double top reversal in price that was triggered by the EUR’s slip back under 1.0895 earlier. The pattern has more or less delivered on its bearish potential already, however.”

“While short-term patterns in the EUR look a little soft, spot is holding above key, short-term trend support at 1.0855 and trend strength oscillators are still aligned bullishly for the EUR, suggesting limited scope for EUR losses.”

“A rebound back to and through 1.0930 is needed for spot to regain some positive traction in the short run, however.”