Euro To Remain Strong Scotiabank

last updated on

Euro To Remain Strong Scotiabank

Euro To Remain Strong - Scotiabank

The Euro is trading comfortably against the US Dollar in both the short & long-term. Whether we look at the technical or the fundamental side, everything hints at a positive Euro.

Amidst this, Scotiabank has shared its views about the Euro. They believe that the Euro is trading in a tight range in the short range. Despite this, it is still positive, which shows that Euro still has the upper hand.

Eur D1 Chart Shows Bullish Pattern

Recently, the ECB Governor also talked about how the central bank is not in a rush to cut the rates. This is similar to what Holzmann said a few weeks ago. According to the ECB governor, the inflation levels in the Eurozone are still elevated.

Also, there's a great deal of uncertainty regarding inflation and when it will come down. The December reading for Eurozone CPI was 2.4%, similar to the preliminary data.

For now, the EUR/USD is seen near the 1.03 handle, close to the parity. In a sense, there are like 300 pips between the parity and the current trading levels.

So, many are wondering if the Euro is heading to parity or if it will make a strong comeback. According to Scotiabank, the daily chart shows the morning star pattern, a bullish sign for the Euro. This means the long-term hints at a positive Euro, while the short-term also shows a similar reading.

Even though there hasn't been any development since Wednesday, that signal is still there. If the EUR is able to maintain gains until the end of the week, the weekly chart might also display a bull signal or 'piercing line.'

Normally, this would be a clear indication that a higher push is imminent, but the macroenvironment instead points to directional risks that are tilting the EUR in the opposite direction.

The bottom line is that the Euro is positive, with 1.00 as the strong support. On the way up, the first key resistance is seen at 1.05.

Trending Stories