EUR/USD: More sideways range trade is likely – Scotiabank

EUR/USD holds in a trading range around parity. Economists at Scotiabank expect sideways trade to persist for now.

Broader technical tone turns more positive above 1.0120

“Short-term price signals are neutral as are trend strength signals, implying more sideways range trade is likely.”

“The broader technical tone turns more positive above 1.0120 (major trend resistance).”

“Support is 0.9865/75.”

“Benchmark natgas prices continue to ease and Germany announced that it will spend another EUR2.5 bn on LNG to ease the energy crisis. High energy costs are, however, coming at a cost. The eurozone current account recorded a EUR19.9 bn deficit in Jul, the weakest since 2008.”