EUR/USD near-term outlook is positive - Scotiabank

Even though it has trimmed gains, the EUR remains up against the USD so far on the day. The early advance reflected a generally weaker USD, combined with some relief in anticipation of a market-positive outcome to the UK referendum plus thin trading conditions. According to Shaun Osborne, Chief FX Strategist at Scotiabank, EUR/USD short-term technical picture is bullish.

Key Quotes

“Spot has risen strongly on the day so far and while it remains to be seen what sticking power strength has, the near-term outlook is positive, with the EUR above 1.1350.”

“There is minor resistance in the low 1.14 area but the market clearly has a shot at trading higher towards 1.15 near-term. We think 1.15+ will likely cap on a broader basis (recall that spot has not closed the week above 1.1500 since early 2015).”