EUR/USD strengthened sharply through 1.14 yesterday and is making further ground today. Economists at Scotiabank expect the euro to race higher towards the 1.15 level on a break above 1.1480/85.

The main challenge for EUR/USD is now 1.1480/85

“Yesterday’s close above the 100-day MA (today support at 1.1429, followed by the figure) and gains above its downtrend from last June act as highlights in the EUR’s bullish drive off of the low 1.11s just last Friday.”

“The main challenge for the EUR is now 1.1480/85 where it peaked in March (followed by a sharp decline under 1.12). A break past these levels opens up a test of 1.15 followed by the mid-figure area (38.2% Fib of Jun-Jan move at 1.1558) as resistance.”