On Wednesday, EUR/USD touched its highest level in nearly eight months at 1.0777. Economists at Scotiabank expect the pair to extend its race higher toward the 1.10 region.

Intraday price action is leaning potentially bearish

“Spot gains continue to pressure the mid-1.07 zone – key retracement resistance – which suggests building pressure for an extension of the EUR rally to the 1.10+ area.”

“Intraday price action is leaning potentially bearish, however, with the early European peak at 1.0775 marking a small outside range session on the six-hour chart.”

“We think the EUR will need to trade well below 1.07 to negate solid, underlying bull moment from a short-term point of view, however.”