EUR is powering ahead, reaching its highest level against the USD since July. Economists at Scotiabank expect the EURUSD pair extend its race higher to the 1.05/1.07 range

Technical momentum drives gains

“While it is a little difficult to pin down a precise reason for the EUR’s pop higher, the technical logic is clear; EUR gains picked up strong momentum after trading through technical resistance at 1.0350 that had capped spot gains three times over the past 24 hours or so.”

“The EUR is now trading well through the high 1.02s (38.2% Fib retracement of the 2022 decline at 1.0286) which puts additional strength to the 1.05/1.07 range (50% retracement at 1.0517) on the cards.”

“Key support is 1.0340/50 intraday.”