EUR/USD risks a move higher – Scotiabank

FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes that short-term technicals for EUR/USD point towards a bullish outlook for the pair.

Key Quotes

“EUR has traded higher, retracing some of yesterday’s losses but still within its weekly range.”

“Strong factory orders in Germany, rising 4.2%m/m has helped to ease fears; while the EC upgraded its GDP forecast on the back of lower oil prices.”

“The Euroarea is expected to grow at 1.3% in 2015 and 1.9% in 2016 (previously 1.1% and 1.7%, respectively); while it decreased its CPI forecast to –0.1% in 2015 and 1.3% in 2016 (previously 0.8% and 1.5%).”

“The escalation of the politically charged development in Greece continue to provide significant headline risk.”

“EURUSD short‐term technicals: mixed—and shifting towards a more bullish outlook.”

“The most important level of resistance is the 1.1633; a close above this level would mark a shift in the EUR’s path. The MACD has been firmly in buy territory for three sessions, but other studies have been slow to follow.”

“We are medium term EUR bears; but see increasing risks of a temporary test higher”