EUR/USD: A push back through the low 1.08 area is needed to boost short-term technical momentum – Scotiabank

EUR/USD holds modest gains through upper 1.07s. Economists at Scotiabank analyze the pair’s outlook.

Short-term bear trend resistance is very close

The EUR’s early December slide remains intact but momentum is weak and spot is showing some tentative signs of steadying around the low/mid 1.07 area. 

The 50% Fibonacci retracement of the September/November rally sits at 1.0733.

Trend signals are edging a bit more EUR-bearish on the daily DMI, however, and EUR losses need to steady and reverse sooner rather than later to avert more bearish pressure building towards 1.0665.

Short-term bear trend resistance is very close (1.0775) but a push back through the low 1.08 area is needed to boost short-term technical momentum.