EUR/USD: Bull run has room to extend to a retest of the 1.11 zone – Scotiabank

EUR/USD regains the 1.10 area. Economists at Scotiabank analyze the pair’s outlook.

Minor dips will remain well-supported

Investors remain concerned by soft economic prospects amid rising rates and slack global demand. EUR sentiment remains well-supported by the outlook for additional ECB policy tightening later this month (and September), however. 

Short-term price action suggests EUR gains through the low 1.10 zone have stalled, with spot trading off its earlier high. But solid bull trend momentum evident across a range of timeframes suggests that minor EUR dips will remain well-supported (around 1.0950/75) and that the bull run has room to extend to a retest of the 1.11 zone.

See: EUR/USD could drift closer to the year's highs near 1.1100 – ING