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EUR/USD eyes the mid-to-upper 1.17s as USD weakness supports the euro

Scotiabank notes a break above 1.1625/50 could open the door to moves toward the 1.1793 resistance level, while German PPI came in above expectations at 1.1% in July.

Reported · Written up by our desk · Major Pairs

EUR/USD has been supported primarily by broad US dollar weakness, according to Scotiabank strategists Shaun Osborne and Eric Theoret, who point to narrowing front end spreads since late June as a driver of the euro’s improvement.

The firm flags short term technicals as bullish, saying a break above 1.1625/50 reinforces prospects for a move toward the mid-to-upper 1.17s, with resistance near 1.1793, the 61.8% retracement of a EUR H1 decline.

Scotiabank also highlights that investors are reacting to US policy decisions, while German PPI rose by 1.1% in July, stronger than expected, adding to the shifting tone in the backdrop for EUR/USD.

Key support is cited near 1.1600 to 1.1625 as the pair trades around 1.1670 and traders continue to monitor related market signals.

Latest closeEUR/USD 1.138 ▼0.6%

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