EUR/USD gains have extended to trade on a 1.09 handle for the first time since last April. New cycle highs are set to keep the focus on gains extending to the 1.10+ zone, according to economists at Scotiabank.

Undertone remains bullish

“Intraday gains to new cycle highs plus solid-looking trend oscillators across the short, medium and long term DMIs all point to EUR gains extending. But spot’s drop back from the session peak is leaving a negative print on the intraday chart which may see more EUR losses early in the American session.”

“Look for minor dips (mid-1.08s) to remain well supported.” 

“We look for EUR gains to reach 1.1000/50 shortly.”