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Euro stabilizes after recent losses, targets 1.1550 to 1.1650 range

Scotiabank expects euro area headline CPI to peak near 3.3% before the next ECB and Fed decisions.

Reported · Written up by our desk · Major Pairs

Scotiabank strategists Shaun Osborne and Eric Theoret say the euro is fractionally higher versus the US dollar, stabilizing after recent losses and attempting a modest rebound from its upper-1.15 lows.

They frame the outlook around expectations for relative central bank policy, pointing to upcoming ECB and Federal Reserve decisions and noting that euro area CPI is seen reaching a fresh 3.3% peak.

The strategists describe the near-term setup as neutral to bullish, citing a sharp pullback in the RSI that is hovering just above the neutral threshold of 50, and they flag the possibility of a medium-term move back above Q2 highs around 1.18.

For trade positioning, they see limited scope for further downside and identify support levels at 1.1550 and 1.1520, while outlining a near-term trading band of 1.1550 to 1.1650, with euro area CPI figures due Tuesday.

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