EUR/USD: Solid suppor on dips to the 1.12 area – Scotiabank

EUR/USD is trading firm but off the daily high near 1.1275. Economists at Scotiabank analyze the pair’s outlook.

There may be some resistance around the 1.13 figure

Spot reached a new cycle high intraday but slipped off the 1.1275 peak, leaving a bearish ‘shooting star’ candle on the intraday chart. There has been no follow-through selling so far though and the short-term chart also highlights solid support for the EUR on dips to the 1.12 area. 

The underlying tone remains bullish – based on solid DMI oscillator readings across the board – which should mean firm support on minor dips. 

There may be some resistance around the 1.13 figure zone but there is little major resistance to the EUR advance ahead of the 1.15/1.16 zone now.