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Euro stalls near 1.1550 resistance versus US dollar, Scotiabank says

Scotiabank said EUR/USD is stuck in a 1.1500 to 1.1600 range as gains need a shift in relative central bank expectations or improved sentiment.

Reported · Written up by our desk · Major Pairs

Scotiabank said EUR/USD is slightly softer versus the US dollar after touching levels last seen in mid-June, with the pair trading defensively into the US session. The bank noted that spot has nearly closed the gap to its fair value estimate using the 2-year Germany-US yield spread, which it cited at 1.1538.

FXStreet relayed Scotiabank’s view that further upside toward recent highs would likely require a change in relative central bank expectations or improved market sentiment. Scotiabank also pointed to a recovery in the RSI, with the indicator climbing into bullish territory into the low 60s.

Even with that momentum, Scotiabank flagged persistence of near-term resistance around 1.1550 and mapped a short-term range of 1.1500 to 1.1600 for the pair. It also said the euro’s recent recovery has closely tracked the turn in yield spreads.

Latest closeEUR/USD 1.122 ▼0.3%

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