EUR/USD is consolidating. The pair needs to surpass the 55-Day Moving Average at 1.0719 to see a brighter outlook, economists at Scotiabank report.

Strong support aligns at 1.0650

“Price patterns that developed around yesterday’s peak at 1.0749 suggest a top/reversal is in place (‘evening star’ reversal on the 6-hour candle chart).”

“The pair is running into broader resistance on the daily chart, defined by the 55-DMA (1.0719); spot closed just above this point yesterday but a more obvious and sustained break is needed to boost the EUR’s near-term outlook.”

“Intraday support is 1.0665 and (stronger) at 1.0650.”