Economists at Scotiabank analyze EUR/USD technical outlook.

Technicals look favourable

“Intraday trading patterns are positive for the EUR.”

“Spot’s snap higher form the session low has developed into a short-term bull ‘hammer’ signal and gains have extended through the May downtrend resistance at 1.0720 (now support).”

“Gains will have to develop a bit more and hold on a daily closing basis but corrective EUR gains could extend a bit more towards 1.0775/1.0825 from here.”

See: EUR/USD may be gently making its way to the March lows at 1.0515/0530 – ING