EUR/USD closed above 1.09 yesterday, the first daily close above that point since April last year. Economists at Scotiabank look for firm support on dips and stay bullish.

Bull trend intact

“The EUR is liable to remain well-supported into next week’s ECB meeting where a 50 bps hike and more strong messaging on the rate outlook seems likely, given President Lagarde has stressed that she intends to ‘stay the course’.”

“Scope for EUR losses looks limited and charts point to firm support developing just below the figure area (1.0865/70).”

“The bull trend may pause in the short run but still has solid underpinnings. The bull target remains 1.1000/50.”