Minor, new cycle highs keep the EUR undertone constructive and, after the evolution of price action over the past month, open the door to the possibility of another, significant push higher in spot over the coming month or so.

Late November/December price action has developed a bullish Head & Shoulders continuation pattern, with the neckline trigger at 1.1010 activated today. The pattern implies roughly 290 bps of upside potential in spot over the next 6-8 weeks – effectively a retest of the July peak (plus a bit more).

Intraday support is 1.0965/1.0970. Resistance is 1.1080.