EUR/USD firm support should appear mid/low-1.1800s – Scotiabank

Shaun Osborne, Chief FX Strategists at Scotiabank, noted the pair should find decent support in the mid/low-1.1800s.

Key Quotes

“Eurozone Sentix investor confidence eased more than expected this month but remains close to multi-year highs amid solid growth momentum. PPI rose slightly more than expected in Oct (+0.4% m/ m) but slowed slightly in y/y terms (+2.5% versus +2.9% in Sep). EURUSD continues to ignore widening short-term spreads (2Y spreads reaching 250bps) and to attract solid support on dips to the low/mid 1.18s We look for limited downside for spot ahead of year end; recall that seasonal trends typically favour the EUR into Dec”.

“EURUSD traded softer overall last week but losses were minimal and may only count for something technically if spot fall more significantly this week. Short-term charts remain somewhat equivocal and favour range trading for now, we think. Hourly and intraday charts suggest firm support in the 1.1830/50 area currently. Progress through the low 1.19s is needed to boost”.