EUR/USD is grinding back against the slide in spot that followed yesterday’s US data round and retains a generally firm undertone, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

Bulls may try to reach 1.1050 near term

“EUR-supportive real and nominal spreads remain a key source of support for the EUR. Swaps also infer the risk of more aggressive rate cuts from the Fed over the balance of the year versus the ECB (swaps are currently implying 65bps or so of additional ECB easing by December).”

“Despite the drop back form the mid-week peak near 1.1050, the overall trend remains EUR-bullish. The intraday chart shows the EUR sustaining a trend rise from the early August low.”

“The daily chart shows the EUR sustaining a steady appreciation trend since June. Short-, medium– and long-term trend oscillators remain EUR bullish. Support is 1.0950/60 intraday. Resistance is 1.1050.”