EUR/USD: Ability to hold up around the 1.07 point suggests some underlying resilience – Scotiabank

EUR/USD is firmer as steady support in upper 1.06s develops. Economists at Scotiabank analyze the pair’s outlook.

Gains through 1.07 have triggered a minor double-bottom signal

ECB policy hawks continue to stress the ‘more ground to cover’ on interest rate messaging (Knot, Schnabel), keeping market expectations high for hikes next week and Jul.

The EUR has found solid support on weakness to the 1.0670 zone over the past few days. 

Solid intraday price gains through 1.07 have triggered a minor double-bottom signal which should see gains extend to the 1.0730 area, with a push through here signaling scope for an additional 60 pips or so of strength.