EUR/USD eyes additional gains to the 1.0650/1.0750 range – Scotiabank

EUR/USD holds strength above 1.05. Economists at Scotiabank expect the pair to extend its gains toward the 1.0650/1.0750 range.

Sentiment shifts constructively

“We look for the EUR to remain well supported on modest dips as investors rather focus on the Fed rate cycle than Eurozone fundamentals – at least for now – to support steadily improving EUR-bullish sentiment.” 

“Bull trend momentum is solidly EUR-bullish across the short-, medium- and long-term DMI studies, which continues to suggest limited scope for counter-trend EUR corrections.”

“The pair has established a clear foothold above 1.05 which should provide a platform for additional gains to the 1.0650/1.0750 range (1.0749 is the 61.8% Fibonacci retracement of the YTD decline in the EUR).”