EUR consolidates in the minimum zone 1.11 – Scotiabank

EUR/USD remains little changed on the day. Spot is trading flat and holding in yesterday’s range pending the upcoming FOMC, notes Shaun Osborne, chief FX strategist at Scotiabank.

Technicals are optimistic

“The markets are waiting for the FOMC and there has been no incentive to push the spot one way or the other. Eurozone August final inflation was marginally revised up to 0.1% M/M (from 0.2%), while the Y/Y measure was unchanged at 2.2% (down from 2 .6%).

“Spot is holding its bullish breakout from the August/September consolidation range (bull flag) on ​​the daily chart. Trend momentum signals are bullishly aligned on the intraday, daily and weekly DMI studies, tilting technical risks clearly towards gains in the euro.”

“Resistance is at 1.12 and 1.1275 in the short term. Support is 1.1100/10 and 1.1050. Sustained gains above 1.1110 by the end of the week will tilt medium-term risks higher.”