EUR/USD to retest last week’s high and short-term resistance at 1.0890 – Scotiabank

EUR/USD retains a modest uptrend in quiet trade. Economists at Scotiabank analyze the pair’s outlook.

EUR supported on minor dips

A solid uptrend has developed since the middle of the month and EUR gains are well-supported by a positive alignment of intraday and daily trend momentum signals. The weekly oscillator is on the cusp of a tilting positive as well. This should mean EUR dips are well-supported at or around short-term bull trend support at 1.0835/1.0840. 

The markets should also be able to press higher to retest last week’s high and short-term resistance at 1.0890. 

A daily close above the 40-DMA (1.0847) should add to positive EUR momentum.