EUR/USD gains modestly as support in the low 1.07 area holds. Economists at Scotiabank analyze the pair’s technical outlook.

Not out of the woods just yet

“Gains are marginal and are not – yet– indicative of a firm technical base in place.”

“Price could be consolidating ahead of another push lower. Still, if the 1.0726 point can hold on a weekly close basis, the EUR may have the technical chops to push a little higher still next week.”

“Gains through 1.0755/65 would be technically positive. A clear push under the low 1.07s would, on the other hand, pave the way for a drop to 1.05.”