EUR/USD: Gains through 1.0655/60 will add to upside momentum – Scotiabank

EUR/USD consolidates around 1.0600. The pair could extend its gains on a break past 1.0655/60 in the short run, economists at Scotiabankr report.

EUR’s recent rally is due a pause or correction lower

“We still rather think the EUR’s recent rally is due a pause or correction lower but intraday price action looks modestly constructive and may develop a little more upside pressure in the short run.”

“EUR/USD losses have been well-supported on sub-1.06 dips; intraday gains that extend through 1.0655/60 (minor bull trigger) will add to upside momentum for a retest of the low 1.07s.” 

“Intraday support is 1.0575/80.”