EUR/USD should find steady support on minor dips – Scotiabank

EUR/USD dips on soft PMI data. Economists at Scotiabank analyze the pair’s outlook.

Daily and weekly trend momentum signals are bullish

Preliminary March data from France was weaker than expected across the board while the German Manufacturing print (41.6) was also well below forecasts and February’s result. Preliminary Eurozone Services and Composite readings strengthened more than expected but the Manufacturing data slipped to 45.7 (below estimates and weaker than February).

EUR/USD losses from the daily peak have checked the short-term rebound in spot but the EUR’s technical undertone retains a bullish lilt after this week’s solid recovery from the low 1.0800 area (200-DMA test). 

Daily and weekly trend momentum signals are bullish, suggesting the EUR should find steady support on minor dips. 

Resistance is 1.0975/1.0980.