EUR/USD reached a marginal new high barely above 1.1050 earlier, reflecting broader USD losses and little else, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

200-week MA is the next major resistance for the EU

“There were no data reports from the Eurozone today. Local focus falls on Thursday’s ECB minutes and the central bank’s update on negotiated wages for Q2. Some ECB hakes have fretted that still high wage growth is a risk for the inflation outlook. Eurozone PMIs are also released Thursday. Real and nominal spreads are EUR-supportive but some additional spread compression may be needed to drive more EUR gains moving forward.”

“Spot is drifting back from the intraday high just above 1.1050, the highest since January. Intraday price action suggests some near-term consolidation may be at hand for the EUR.”

“Bullish trend oscillators on the intraday, daily and weekly DMI oscillators suggest limited scope for EUR corrections at the moment, which should mean firm support on dips to the mid/upper 1.09s. The 200-week MA (1.1064) is the next major topside challenge for the EUR.