EUR/USD is trading soft on the session. The pair may correct recent gains, economists at Scotiabank report.

The move higher may be running out of momentum

“With gains having largely met our short-term technical target (we have been anticipating a move up to the 1.0650/1.0750 range), some consolidation is possible, if not likely in the next few weeks.”

“Daily oscillator signals are bullish, but stretched, and the move higher may be running out of momentum.”

“We see short-term support at 1.0575/00.” 

“Corrective risks may extend to the 1.0250/1.0450 range into Q1.”