Technical Trend Looks Stretched – Scotiabank

EUR/USD is steady as markets consolidate recent gains, notes Shaun Osborne, chief FX strategist at Scotiabank.

EUR consolidates in 1.11 seconds

“Final Q2 German GDP data was unchanged from the preliminary report (-0.1% Q/Q) as weak consumption and investment put a damper on growth. ECB’s Knot and Nagel are speaking today.”

“The minor deviation of the euro from the 1.12 peak may just be a pause (potential bull flag) in the still strong uptrend of the euro. The RSI oscillators signal that the EUR is somewhat overbought, but the strength of the higher spot trend over the past four weeks provides good protection against countertrend corrections for now.”

“Minor support is 1.1150. Stronger intraday support is at 1.1105/10.”