EUR/USD consolidation expected to break to the upside – Scotiabank

Spot stays neutral although the current consolidative theme is seen breaking to the upside, suggested FX Strategists at Scotiabank.

Key Quotes

“EURUSD continues to pivot narrowly around 1.23. The EUR looked well bid yesterday – albeit in the context of a market that is range bound – but gains have reversed this morning, dumping EUR back to the 1.23 area”.

“Price action overall Monday was constructive and suggests a firmer base developing perhaps in the low/mid 1.22s now”.

“Look for resistance on gains to the mid-1.23s and (stronger) the low/mid 1.24s. We look for firm support on dips overall and expect the recent consolidation to be resolved bullishly for the EUR”.