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In view of Strategists at Scotiabank, the pair remains supported on dips.

Key Quotes

“There were no major data releases from the Eurozone today and markets are expecting little or no policy news from this week’s ECB meeting (at best, perhaps some clarification over whether the window for a policy tightening will open in 2019 opens towards the middle or latter part of the year). This month’s Bundesbank report notes a “little more” momentum in domestic GDP growth in Q2, which will bolster the notion that the Eurozone economy is bouncing back after the soft patch in Q1. Look for more range trading for now but cleaner speculative EUR positioning (IMM net longs the lowest in a year) suggests some scope for EUR perma-bulls to start reloading”.

EURUSD‘s technical position is little changed from late last week. On the one hand, the market looks better supported overall above the 40-day MA benchmark; on the other, overnight gains were easily capped around noted resistance at 1.1750. Early gains suggest that the North American session should pivot around the 1.1690 area – better supported above but at risk of renewed weakness below. Trend momentum is flat on the short-term studies but longer run price action suggests good support on dips and a stall in the slide from the Q1 high around 1.2550″.