EUR/USD should find support near 1.1620 – Scotiabank

FX Strategist at Scotiabank Eric Theoret noted the pair’s outlook remains neutral/bullish in the near term, adding that decent support is expected around 1.1620.

Key Quotes

“EUR is steady, consolidating just below its 100 day MA (1.1701) as it trades within the gently rising trend channel established off the October 27 low. EUR has been remarkably quiet in the absence of any major data releases. Yield spreads remain a fundamental headwind however EUR appears happy to ignore the fresh lows in the Germany-U.S. 2Y. EUR risk reversals are close to neutral across a range of time horizons”.

“EUR appears to have established a modestly rising trend channel off of last Friday’s multi-month low, with a clear consolidation just below the 100 day MA (1.1701). Bearish momentum indicators are softening, and EUR appears set to attempt a break above its 9 day MA (1.1672). Near-term resistance is limited ahead of 1.1720. Support is expected at 1.1620”.