EUR/USD: Broader trends continue to point to a test of the 1.10 area – Scotiabank

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EUR/USD has gained steadily from last week’s low near 1.0720 and looks set to drive a little higher still in the short run, Shaun Osborne Chief FX Strategist at Scotiabank, reports.

EUR retains a steady bid tone

“EUR found solid support on minor weakness to the low 1.07 area over the past few days – a little below where I thought demand would emerge – but the broader trend remains constructive, supported by the incremental improvement in economic data and the leeway that affords the ECB to ratchet up policy a little more in the coming months.”

“We spot minor resistance at 1.0875/80 and 1.0920/25.”

“Broader trends continue to point to a test of the 1.10+ area.”