EUR/USD bullish near term – Scotiabank

In opinion of Shaun Osborne, Chief FX Strategist at Scotiabank, dips in spot are seen as buying opportunities.

Key Quotes

“The rebound in the currency has been supported by stronger Eurozone (German) growth data at a time when markets appear to be more concerned about US prospects. The Eurozone reported another large, EUR 25bn trade surplus for Sep, above expectations for a EUR21bn surplus. We are bullish on EURUSD in the short and medium term”.

“ EURUSD gains have extended well through key, short-term technical benchmarks (50-, 100- and 200-day MA signals) and the market is now trading above trend channel resistance in the mid 1.17s (now support). Gains are strongly underpinned by positive trend strength signals on the shorter-term studies and we think longer-term price action is encouraging for the broader outlook for the EUR. We spot resistance at 1.1880/85 (mid-Oct highs and 61.8% Fib retracement of the 1.21/1.1550 drop). Modest EUR dips look a buy”.