Euro: Bullish momentum targets mid-1.17s – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret note the Euro (EUR) is resilient around 1.1576, with Germany’s ZEW survey showing improving expectations and a slow recovery backdrop. Short-term EUR/USD technicals are described as bullish, with strong intraday and daily momentum. They maintain a near-term objective of a break through 1.1625/50, opening scope for gains towards the mid-1.17s, while support is seen at 1.1515/25.

Euro resilience backed by bullish signals

"The EUR is resilient, but little changed on the session. Germany’s August ZEW survey reflected better-than-expected sentiment, with the Expectations component rising to 34, above the consensus forecast of 30 and above July’s 26.3."

"Expectations and (soft but improved) Current Situation data suggest the economy remains in slow recovery mode."

"Bullish—The EUR has slipped back to the initial support zone in the upper 1.15s after stalling around 1.1615 yesterday. Intraday and daily trend momentum remain firmly bullish which should help limit near-term losses."

"The short-term bull objective remains an extension through the 1.1625/50 range which should then open up the charts for further gains to the mid-1.17s. Support is 1.1515/25."