EUR/USD: Potential for gains seen between 1.1680 and 1.1780 range – Scotiabank
Euro Strengthens Amid Positive Technical Indicators
According to Scotiabank analysts Shaun Osborne and Eric Theoret, the Euro continues to consolidate near the 1.17 mark, following sentiment-driven gains as geopolitical tensions ease. They point to favorable risk reversals, supportive yield differentials, and a decline in demand for downside protection as key factors.
The Euro is maintaining its upward momentum, entering Friday’s North American trading session with a slight 0.1% increase against the US dollar. The currency’s recent stabilization around 1.17 reflects a recovery fueled by improved market sentiment.
Improvement in risk reversals indicates waning concerns about Euro weakness, allowing investors to focus more on economic fundamentals.
Yield spreads are currently advantageous for the Euro, presenting potential for further gains in the short term.
Technical analysis shows a bullish outlook, with the Relative Strength Index (RSI) well above 50, signaling strong momentum after a sharp drop to oversold levels in mid-March.
Resistance is minimal before reaching 1.18, a price point that previously saw significant trading activity in late February. The anticipated trading range for the near term is between 1.1680 and 1.1780.
This article was produced with assistance from an AI tool and reviewed by an editor.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Uniswap processes $70.6 billion in 30-day DEX trades, outpacing rivals
Morgan Stanley’s $50.6M BTC buying shields market – But rally to $82K has THIS hurdle
Will the Fed "continue raising interest rates"? Will the "tightening cycle" of the late 1980s be repeated?
The Citi report points out that the current macro environment is highly similar to the tightening cycle of 1988-1989, when the economy remained resilient and inflation pressures gradually accumulated, followed by a slowdown in economic activity before policies shifted to easing. During that tightening cycle, the Federal Reserve raised interest rates 16 times in a row.
Rare alliance of arch-rivals! Musk and Altman support Dario Amodei's call to "slow down AI globally"
Anthropic's Amodei issued a call to "slow down AI globally," and to everyone's surprise, rivals Musk and Altman both publicly endorsed the initiative. The three industry giants unanimously agreed to grant third-party access to "employee-level" evaluation rights and to implement coordinated deceleration measures. Altman went further, announcing that OpenAI will not IPO this year. The resignation of a researcher and a collective breakout of uncontrollable AI systems have ignited long-standing industry fears.
Crypto prices
More
