EUR/USD to rally if the Fed blinks on Wednesday – Scotiabank

EUR/USD is starting the week on a firm note. Economists at Scotiabank expect the pair to rise if the Fed blinks at its Wednesday's monearty policy decsion.

More range trading seems the likely course of events for now

“More range trading seems the likely course of events for now but the EUR will benefit if the Fed blinks on Wednesday after the ECB delivered last week.”

“Weak trend momentum on the short (intraday/daily) DMIs suggests that the roughly sideways Feb/Mar range in the EUR should extend a little more – with EUR gains slowing above 1.07.”

“We see firm resistance around 1.0750/60 for now.”

“Support is 1.0625/30 intraday.”