EUR/USD: On track for a test of 1.10 amid higher rates in Europe and uncertain Fed policy outlook – Scotiabank

EUR/USD rebounds from early losses. Ultimately, a move through to 1.10+ looks on the cards, economists at Scotiabank report.

Limited scope for counter-trend corrections

“Bullish trend signals on the short, medium and long-term oscillators suggests limited scope for counter-trend corrections and ongoing pressure for gains to extend towards the low 1.09s and a retest of last week’s high at 1.0927.” 

“Higher rates in Europe while the outlook for Fed policy remains uncertain will help keep the EUR supported and on tracking for a test of 1.10+.”