EUR/USD: Underlying bull trend remains intact and will extend – Scotiabank

EUR/USD progresses ahead of ECB. Economists at Scotiabank analyze the shared currency outlook.

More progress is required to bolster the short-term outlook
Solid gains off this week’s low came in the nick of time to reinvigorate the daily DMI reading and renew a bullish alignment of short, medium and long-term trend oscillators for the EUR.

The intraday study is barely into bull mode at this point so more progress is required to bolster the short-term outlook. But the broader pattern of trade – successive higher highs and higher lows plus the DMI alignment – suggests the underlying bull trend remains intact and will extend.

Resistance is 1.1200 and 1.1275/80. Support is 1.1075/1.1100.