EUR/USD needs to push on through the low 1.08s to put the upper 1.08 area under more pressure – Scotiabank

EUR/USD trades firm but can’t – yet – build on gains through the low 1.08s. Economists at Scotiabank analyze the pair’s technical outlook.

EUR/USD finds support on minor dips
The EUR remains well-supported but the market has failed to really develop gains above the 1.0810 Fibonacci retracement resistance point (38.2% of the May decline in spot).

Spot is finding support on minor dips (1.0775/80 intraday) but really needs to push on through the low 1.08s to put the upper 1.08 area under more pressure (40-Day Moving MA at 1.0860 will be an important objective for the bull trend to develop further).