EUR/USD appears bullish near term – Scotiabank

In view of FX Strategists at Scotiabank, the pair’s prospects in the near term appear tilted to the upside.

Key Quotes

“EURUSD’s rejection of the low 1.15 area looks a fair bit more compelling from a technical point of view this morning as spot moves through short-term trend resistance and tests (weak) bear trend off the 1.24 area around 1.1690”.

“The EUR still has some work to do and we see a cluster of minor technical points between the 1.1720/45 area that may constitute a belt of price “congestion” to hamper EUR gains in the near-term”.

“However, the EUR sell-off is very stretched and prone to a modest rebound at least from here. Above 1.1750 is technically positive. We see support intraday at 1.1645/50 now”.