EUR/USD looks for a test of 50-DMA at 1.1307 but a sustained advance is unlikely – Scotiabank

EUR/USD keeps advancing on Tuesday. The pair could keep advancing in the near-term, but the longer-term perspective favors the downside, in the view of economists at Scotiabank.

EUR/USD set to remain in a 1.12-1.14 range

“The EUR’s recovery from the low 1.11s on Friday now seems on track to test its 50-day MA of 1.1307 that stands as resistance alongside the figure zone; 1.1335/50 follows.”

“The relatively quick recovery of the 1.12 handle for the EUR over the past two sessions averts, for now, a move to 1.10 but the broader technical picture remains negative.

“EUR/USD looks set to remain in a 1.12-1.14 range.”

“Support is 1.1250 and 1.1225 ahead of the figure.”