Steady gains in the EUR/USD since Tuesday leave the pair trading relatively firmly. Economists at Scotiabank note that EUR/USD is on the cusp of a further push higher.

EUR/USD nears 200-Day Moving Average test

“Short-term trading patterns are positive, with the EUR gaining steadily from its early week low and accelerating higher yesterday after regaining the 1.03 zone.”

“EUR/USD is on the cusp of retesting the mid-Nov high (1.0479) on the short-term chart and we continue to think that gains should extend to the low 1.05 (retracement resistance point) following the break above long term trend resistance. More significant, however, is the fact that the EUR is poised to regain (conclusively) its 200DMA, which it last saw in Jun 2021. Pushing through this benchmark would be hugely supportive from a market point of view.”