Faces better selling pressure in upper 1.11s – Scotiabank

EUR/USD maintains a firm underline, but the EUR has eased from its best levels of the week as short-term yield spreads correct slightly from the peak seen earlier this week, notes Shaun Osborne, chief FX strategist at Scotiabank .

Price action is neutral on the intraday chart

“Narrower spreads in EZ/US yields across the board (the narrowest in more than a year) remain a main driver of euro gains and suggest limited scope for euro losses at least in the near term.”

“The intraday chart reflects better selling pressure building into the upper 1.11s in the last day as investors take profits in euro longs. Price action is neutral on the intraday chart, but broader trends are positive, supported by bullishly aligned trend strength signals on the short-, medium-, and long-term oscillators.”

“The euro’s minor dips to the upper 1.10s/low 1.11s should remain well supported.”