EUR is quietly consolidating in a good vary simply above 1.14, getting into Thursday’s NA session unchanged from Wednesday’s shut, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
The multi-month pattern is bullish
“The discharge calendar has to date been restricted to barely softer euro space PPI knowledge and unexpectedly robust Germany manufacturing facility orders knowledge. Market individuals are eagerly awaiting the ECB’s coverage choice and the discharge of the most recent financial projections.”
“A 25bpt reduce has been broadly anticipated and absolutely priced, however markets have been shifting their expectations for additional easing as some policymakers have spoken to the potential of right now’s reduce marking the top of the most recent easing cycle. A repeat of Wednesday’s BoC might ship materials EUR energy.”
“The multi-month pattern is bullish with a transparent sequence of upper lows and better highs since early February. The RSI is bullish however solely modestly so, leaving ample room for additional features. Latest assist has been noticed on the 50 day MA (1.1247) and the most recent resistance has been noticed within the mid-1.14s. A break of the native excessive would shift the main focus to the April 21 excessive within the higher 1.15s.”
