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FX Strategists at Scotiabank keeps the constructive view on the pair, adding that solid support should emerge in the mid/low-1.1700s.

Key Quotes

“Preliminary Eurozone PMI data was a little disappointing on the manufacturing side, with both France and Germany registering slightly less positive growth in the sector this month. German service sector output rose strongly,  however, lifting Eurozone services and steadying composite readings to extend the broader stabilization in activity seen after the H1 slowdown. The data’s release coincided with peak EURUSD trading through the overnight session and pulled spot back below 1.18″.

“Spot’s slide from 1.18+ earlier leaves the short-term chart patterns looking a little soft””potential outside range session on the 6-hour chart. EURUSD closed strongly through key resistance at 1.1725 yesterday and weekly patterns remain EUR-positive so we expect good support for the EUR on modest dips through the low/mid 1.17s. Back under 1.17 in a meaningful way through the close today will rob the market of the upward momentum that has evolved this week”.